Turkish mills are aiming to compensate for the gap in their export sales - during the absence of major markets like Israel and Yemen amid the conflict in the Middle East - with sales to the Caribbean region and Africa. Most European buyers are negotiating for late June shipments as the new quota period will begin on July 1, while they are exerting pressure for further discounts. Meanwhile, Turkish mills are seeking to keep their longs export prices firm due to their high production costs, which include high energy prices.
Currently, ex-Turkey rebar prices vary at $590-600/mt FOB for May-June shipment, stable over the past week, while a few Ukrainian buyers are aiming for below $580/mt FOB in their inquiries, which does not seem feasible so far. By mid-April, sales of two rebar cargoes to Jamaica were rumored, totaling around 10,000-15,000 mt, at $580-585/mt FOB. In addition, the sale of a mixed cargo of rebar and billet to Peru in early April was also rumored with extras at around $600/mt FOB for rebar. Moreover, "Ethiopian buyers are satisfied with Turkish rebar quality and they will continue buying material from Turkey," one source commented.
In the Turkish domestic rebar market, most mills in the Marmara and Izmir regions are still offering rebar at $590-620/mt ex-works, including Icdas A.S. a week ago. However, the workable rebar price seems close to the lower end.
In the wire rod segment, ex-Turkey export prices have remained unchanged at $600-610/mt FOB for May-June shipments. The EU wire rod quota for the period which began on April 1 has been exhausted, so a few negotiations for the Balkan region may be seen soon for the next round of export sales. In addition, most mills are offering wire rod at $600-640/mt ex-works, versus $610-645/mt ex-works a week ago. Kardemir issued its 6-27 mm SAE 1008-1010 grade wire rod at $600/mt ex-works on Thursday, April 25.
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