Ex-Turkey rebar prices for late September and October shipments have moved down to $435-440/mt FOB, while most mills had been standing on $435-445/mt FOB in their initial offers on Tuesday this week. Generally, international demand remains slow with bids coming at $430/mt FOB and below. Market sources indicate that a 5,000 mt rebar sale was closed at $435-440/mt FOB for prompt shipment to Ukraine which is not a usual export market for Turkey. The EU has been quiet this week, while the remaining quota for Turkish rebar stands at around 50,626 mt, with 7,156 mt of rebar waiting at EU ports to be processing by customs.
Turkish wire rod for October shipment has been available at $475-480/mt FOB, versus $485-490/mt FOB last week. According to sources, $470/mt FOB is currently achievable for decent orders. Buyers from West and North Africa are in the market currently, with approximately 11,000-12,000 mt sold from Turkey at $470-480/mt FOB for September-October shipments. In addition, Turkish mills have concluded deals to Romania and Africa for cargoes consisting of 3,000-5,000 mt wire rod at $470-475/mt FOB for September shipment. In addition, South American buyers are reported to be also active for wire rod imports, but no transaction details have been disclosed.
The UK may become one of the promising outlets for Turkey in terms of its longs sales. Even though the UK’s construction market has been weak, the workable level for ex-Turkey CARES-approved rebar may be considered to be below $435/mt FOB owing to the favourable USD/GBP exchange rate, with the pound weakening steadily over the past eight weeks. Wire rod prices are expected to be $10-15/mt higher. At present, UK buyers are not willing to pay the extra 25 percent import duty since the EU quota is almost exhausted for rebar. However, if the UK leaves the EU on October 31, this trade restriction will no longer be an issue. At the same time there are reports that the UK will introduce its own safeguard measures if Brexit happens.