Turkish exporters are taking their time to set their new long steel prices amid the uncertainty regarding the financial situation in Turkey given the ongoing rapid currency fluctuations. Rising freight rates are also a long-standing issue for the possible rebar transactions, specifically to Far Eastern markets, while demand coming from nearby destinations is deemed insufficient.
Earlier this week, ex-Turkey rebar export prices were mainly standing at $740-750/mt FOB, versus $735-750/mt FOB seen previously. Mostly volumes for December shipments were available, with only a limited tonnage available for end-of-November shipments. According to sources, Turkish mills succeeded in concluding small-tonnage rebar sales to Israel and Somali, though further details are not available at the time of publication. The possible rebar sale to Israel was rumored as being done at $740/mt FOB, which fits into the abovementioned price range. Some mills have stopped quoting rebar for export for now, aiming to evaluate the price prospects in the import scrap segment and also the potential of the domestic rebar demand.
In the Turkish domestic rebar market, most mills in the Izmir and Marmara regions were offering at around $740-750/mt ex-works yesterday, up $10/mt over the past week. Today, October 21, the Turkish Central Bank has cut interest rates from 18 to 16 percent, and so the market expects a further weakening of the lira. As a result, most mills have stopped offering rebar for now, including Icdas A.S. Earlier this week, an Izmir region-based mill sold around 8,000-10,000 mt of rebar at $730/mt ex-works, while a few mills in the Marmara region also succeeded in selling small tonnages at $750/mt ex-works.
In the wire rod export segment, a few Turkish mills were offering at $850/mt FOB, stable week on week, while a few mills have started testing $890/mt FOB for January shipments. Turkish mills are expected to revise their longs offers in line with the currency fluctuations depending on how the country’s financial situation affects the domestic rebar trade.