Turkish long steel mills are attempting to conclude export deals before the holiday season as well as following the upward trend in the import scrap and billet segments. However, most international buyers are having difficulty digesting such a sharp price hike over a short period of time and are exerting pressure for some discounts. As a result, given some demand coming from the MENA region, the workable price for rebar from Turkey is somewhat lower than the official offer prices.
Currently, ex-Turkey official rebar prices vary within $620-630/mt FOB for January-February shipments, up $10-20/mt over the past week. Some Turkish mills seem to be willing to accept $610-615/mt FOB depending on the region and tonnage. Last week, a Marmara-based mill concluded a sale of a small-tonnage rebar lot to Yemen at $595/mt FOB on theoretical weight basis, equal to around $610/mt FOB on actual weight, SteelOrbis has learned. In addition, another small rebar lot was sold to Israel at around $605/mt FOB.
A few new enquiries are received from Israel, while European buyers are in a holiday mood already. The sale of small rebar lot has also been rumored to Estonia at around $590/mt FOB. However, the price is too low under the current market conditions. "It might be a small tonnage, up to 5,000 mt, and a long-standing enquiry which may have been just recently concluded," a source commented. Another rebar sale has been rumoured to Mexico at around $595/mt FOB and the information is mainly denied, while sources say there is no logic in selling to this destination since Mexico is already strong on the supply end. Some movement may be seen in the Albanian market in terms of sales from Turkey, since there is currently an official trade delegation visit regarding improvement of trade relations.
As for competition in the region, there is basically only Egypt with rebar offers relatively stable at $600-610/mt FOB for end-of-February shipments. As a result, Turkey’s prices for rebar are quite competitive and material can be also supplied with a shorter lead time.
In the Turkish domestic rebar market, most mills in the Izmir and Marmara regions are offering rebar at $620-635/mt ex-works, versus $600-625/mt ex-works a week ago. One Izmir-based mill is rumored to have increased its rebar price to $610/mt ex-works to $615 and then to $620/mt ex-works by selling some tonnage at $610-615/mt ex-works this week. Earlier today, Kardemir sold around 26,000 mt of rebar at $632/mt ex-works, with its advantageous payment terms, SteelOrbis has heard.
In the wire rod segment, a few mills are testing $640/mt FOB, rising by $20/mt for January-February shipments over the past week. In the import segment, offers from Malaysia are at $600/mt CFR and a $10/mt discount is believed to be achievable. In addition, Egypt’s wire rod offers to the Mediterranean region and to the EU overall are mainly at $600-620/mt FOB for end-of-February shipment. Indonesia and Vietnam are currently offering at $565/mt FOB, with estimated freight of a minimum $60/mt for 20,000-25,000 mt size orders.
In the local Turkish market, the general wire rod price has settled at $635-650/mt ex-works, versus $610-645/mt ex-works a week ago. However, the higher end still seems difficult to achieve under the current market conditions. Moreover, Kardemir has issued its prices for 6-27 mm wire rod of SAE 1008-1010 grade at $635/mt ex-works today, which is at the lower end of the general range in Turkey.
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