Ex-Turkey longs prices weaken amid lower scrap prices, buyers’ pressure

Thursday, 22 August 2019 17:44:24 (GMT+3)   |   Istanbul

Sliding import scrap prices, coupled with insufficient export demand for Turkish rebar, have again resulted in decreases in Turkish rebar producers’ export prices.

Export prices for Turkish rebar for September production are nowadays mostly at $445/mt FOB versus $450-455/mt FOB last week. “Forget about $450/mt FOB, you cannot get it from any buyer, especially now when scrap is down,” a large Turkish producer commented. The level of $440/mt FOB is not yet widely pronounced in the market as an initial offer, but is reachable, sources assume. Producers say that buyers’ price idea is generally even lower than that.

The EU has been quiet as a destination for Turkish rebar this week, while the remaining EU quota for Turkish rebar stands at around 53,317 mt. This week a 5,000-6,000 mt rebar sale from Turkey to Romania was transacted at $445/mt FOB for quick delivery.

Turkish offers to Israel were coming at $475/mt CFR or around $445/mt FOB with no positive feedback from buyers. Workable levels for sales to Yemen are estimated at $440-442/mt FOB for once-folded material, but no fresh deals have been reported.

According to market sources, no active negotiations are currently underway for Turkish rebar in Asia as buyers have enough stocks. Earlier this week, Turkish offers to Singapore were reported close to $475-480/mt CFR on theoretical weight basis (around $455/mt FOB), but customers would probably not pay far above $450-455/mt CFR or around $430-435/mt FOB, sellers say.

In the meantime, Turkish producers are cautiously optimistic regarding possible rebar sales to the US after the recently disclosed 15,000 mt transaction closed by a Marmara region-based mill at $635-640/mt CFR on theoretical weight basis, duty paid.

Ex-Turkey wire rod to be shipped in October has been available this week at $485-490/mt FOB, while last week some mills were trying to stick to $500/mt FOB in their offers. According to sources, $480/mt FOB is currently achievable for decent orders.

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