Turkish mills have been still struggling to generate sales in the export rebar segment for October shipments, while demand from international buyers has been extremely slow. Some of them are still in the holiday period, while others prefer to delay their purchases and to evaluate the consequences of the downturn, seen in the major global raw materials segment. In addition, high freight rates and port congestion in Asia are pulling Turkish mills out from these markets, while those sales are needed to cool off the pressure on the prices. As a result, most mills have been focusing on the alternative destinations such as West Africa this week.
Turkish official export rebar prices are standing at $675-690/mt FOB versus $680-690/mt FOB last week. According to sources, a trader has succeed to sell around 5,000 mt to West Africa at $675-680/mt FOB earlier this week. Another sale has been closed at $685/mt FOB for 5,000 mt of rebar, to be shipped in October. Lower levels are also possible, according to some market players. Buyers consider $670/mt FOB and even $660/mt FOB as achievable levels on exports, which is in line with the local market workable levels.
Turkish local rebar demand is also weak due to the currency fluctuations and the negative sentiment both in the local and import scrap segment. Domestic mills’ offers are at $670-680/mt ex-works today, sources report even $660/mt ex-works and $665/mt ex-works are possible in the Izmir and the Iskenderun regions today, respectively. However, most local traders are refraining from restocking and they are not willing to undertake the financial risk of carrying additional stocks.
In the wire rod segment, a few mills are offering at $790/mt FOB (down $10/mt) this week, while one single mill has been heard to offer very aggressive pricing in order to generate sales, SteelOrbis has heard. Also, SteelOrbis has learned that a cargo has been sold in the export market, consisting 5,000 mt of wire rod at $800/mt FOB, to be shipped in October.