Turkish suppliers are squeezed by sluggish international demand and the depreciation of the Turkish lira against US dollar for their domestic rebar sales. Most buyers are exerting pressure for additional discounts and are taking their time to restock as they believe longs prices may soften.
Currently, Turkish rebar export prices are available at $640-650/mt FOB, versus $660-670/mt FOB in the middle of the week, for September shipment. “I believe the lowest rebar offer level is at $650/mt FOB and slightly lower levels are on the table for serious buyers only,” a source mentioned.
In the Turkish domestic rebar market, most mills are attempting to keep their official rebar prices stable as the week ends. The rebar price range varies at $650-670/mt ex-works in the Marmara and Izmir regions, down by $10/mt on the lower end. Most local traders are exerting pressure for further discounts in dollar-based rebar prices amid the rapid currency fluctuations. Cash generation is another issue. Credit payments by the end of the month and VAT payments require cash, which also puts pressure both on the Turkish mills and local traders for next week.
In the wire rod segment, a few mills are offering wire rod at $670-680/mt FOB, falling by $30/mt over the past week.