Turkish steel mills have been operating in rather challenging market conditions for a while now, including tough competition with North African suppliers, high productions costs and low demand for long products in the overseas markets. The situation, however, has been aggravated by the recent rise in energy tariffs, which has made it even harder for Turkish mills to maintain margins. In addition, further US tariff measures and retaliation by targeted countries have increased the general uncertainty. In Turkey’s domestic longs market, trade is not great either, despite better weather conditions, while financial and economic conditions weigh on daily trading activity.
Currently, Turkish mills are aiming to maintain their official rebar offers, while negotiating additional discounts for the serious buyers only in order to be on the safe side. Ex-Turkey rebar offers still vary at $580-585/mt FOB for April and early May shipments. However, the levels of $575/mt FOB and below still seem more acceptable under the current market conditions. No fresh rebar sale has been heard so far. "European buyers might consider the orders for the next quota round which will begin by July 1," a source told SteelOrbis. In the meantime, the rebar and wire rod prices from North African suppliers are quite lower than the Turkish ones. Particularly, Egypt is at $555-560/mt and $570/mt FOB, respectively. The key Algerian producer is offering around $565-570/mt FOB for both products, while another one is at $546/mt FOB for wire rod and $556/mt FOB for wire rod, SteelOrbis has learned.
In the local Turkish rebar market, official offers and workable prices have settled at $570-595/mt ex-works, down by $5/mt on the lower end depending on the region. In the Izmir and Marmara regions, the levels are at $565-590/mt ex-works, stable despite the backdrop of the sluggish demand. In addition, an Iskenderun-based mill has offered its rebar at around $580/mt ex-works, up by $8/mt week on week, for an extended delivery period, based on the current exchange rate of $1 = TRY 38. According to sources, the latest workable rebar price in this region stands at around $560/mt ex-works, down by $5/mt week on week at the same exchange rate, for cash payment only.
In the wire rod segment, most Turkish mills have kept their offers unchanged at $585-595/mt FOB, for April and early May shipments. The workable wire rod export price still seems close to the lower end of the range. In addition, workable Turkish domestic wire rod prices vary at $575-595/mt ex-works, unchanged over the past week.