Turkish mills’ rebar export offers are currently at $465-470/mt FOB, versus $455-460/mt FOB seen last week, mainly for late October-November shipments. However, international rebar buyers are now in wait-and-see mode after this increase in export offers.
Approximately 10 days ago, a rebar deal for 30,000 mt was concluded to the US at around $590/mt CFR on duty paid basis, approximately. Some additional negotiations have been heard from buyers in the Gulf of Mexico.
Sources report that 2,000-3,000 mt of rebar from the Iskenderun region have been sold to Lebanon at $460/mt FOB, for October shipment. In the local Turkish rebar market, approximately 10,000-15,000 mt of rebar were traded at $457-460/mt ex-works. In addition, Kardemir has sold around 40,000 mt of rebar at $460/mt ex-works this week. Wire rod demand seems better than rebar demand for now.
In the wire rod segment, Turkey’s export offers have increased by $15/mt over the past week to $515-525/mt FOB, mainly for November shipments. In addition, a few Turkish mills are currently not offering as they are fully booked until the end of November. Sources report that the European wire rod quota which opens on October 1, has already been filled, while the next quota period which begins on January 1, 2021, is still too far away for sales, SteelOrbis understands.
Israel is currently the key destination for Turkish wire rod exports. Turkish mills are filling the gap left by CIS-based producers extended delivery terms with their quicker lead times, SteelOrbis understands. Sources report that 10,000-15,000 mt of wire rod were traded to Israel from Turkey at $500-510/mt CFR LO last week, while the current price range to this destination is around $535-550/mt CFR LO Israel this week. Moreover, 20,000-25,000 mt of wire rod has been traded to Israel at $515/mt FOB Turkey this week, SteelOrbis has heard, with the average freight rate around $30-35/mt. However, it has not been confirmed by the time of publication.