As most international buyers have been back from the holiday since the beginning of this week, inquiries for long steel purchases are under negotiation. As a result, trading activity is somewhat better than during the pre-holiday season. Most Turkish mills are attempting to increase their export prices in line with the positive sentiment in the import scrap and billet segments. The main export destination targets are the Balkan region and Jamaica due to the absence of Israel and Yemen against the backdrop of the ongoing war. Rising freight rates are also becoming a challenge for extended delivery periods. So, some Turkish mills are cautious and are seeking to keep their prices firm to be on the safe side. However, most international buyers are exerting pressure for further discounts given the competitive pricing from North African suppliers.
Currently, ex-Turkey rebar offers vary at $610-620/mt FOB, versus $600/mt FOB for February shipment a week earlier. A few mills are even testing $630/mt FOB, but this level seems a little high under the current market conditions. A rebar lot of around 10,000-15,000 mt was traded at $600/mt FOB to Jamaica at the end of last week, while the sale of another lot of around 3,000 mt of rebar was concluded to Romania at $615/mt FOB. In the local Turkish rebar market, Kardemir succeeded in selling 26,500-30,000 mt of rebar at $625/mt ex-works today, January 10. Most mills in the Izmir and Marmara regions are offering rebar at $620-645/mt ex-works, versus $600-620/mt ex-works a week ago. It is safe to say $620-625/mt ex-works seem quite workable under the current market conditions.
In the wire rod segment, offers vary at $630-640/mt FOB for February shipment, up by $10-20/mt over the past week. In the Turkish domestic wire rod market, the general price level varies at $625-660/mt ex-works, versus $ 615-650/mt ex-works last week. The higher end seems difficult to achieve. Sources report one Iskenderun-based mill has been focusing on its wire rod export deliveries and has increased its wire rod price rapidly to $650/mt ex-works this week. However, most buyers are taking their time before concluding new purchases and are purchasing only in line with their daily needs. In addition, Kardemir's price for 6-27 mm wire rod of SAE 1008-1010 grade is at $645/mt ex-works, which is closer to the lower end of the general price range in Turkey.
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