Turkey-based longs producers continue focusing on domestic sales, where prices have increased to even higher levels compared to last week, supported by stronger import scrap prices. As a result, buyers have felt a certain confidence in accepting a slight increase in deal prices over the past week, while mills have set new, more optimistic targets for domestic rebar sales prices. As regards exports, Turkish producers have taken the same upward steps, but the new levels are completely unworkable in most markets, particularly while much lower longs offers are available from North African suppliers.
Today, December 3, rebar mills’ official offers in Turkey’s domestic market have settled at $575-600/mt ex-works, with the most ambitious indications coming from the Marmara region-based mils. The workable price levels, according to sources, have varied at $567-572/mt ex-works in the Iskenderun region, at $580-585/mt ex-works and slightly above in the Marmara region and from $568/mt to the low $570s/mt ex-works in Izmir. Both offers and deal prices indicate a $5-10/mt increase over the past week in most regions, while only in the Iskenderun area are deal prices down slightly. “Seeing scrap rise, buyers feel a greater push to buy rebar today instead of tomorrow. Still, it is doubtful that scrap will exceed $370/mt [for HMS1/2 (80:20)], just the same as rebar prices will hardly be accepted far above $600/mt ex-works,” a trader told SteelOrbis. Local buying activity is also supported by the favorable weather conditions in Turkey, which are expected to last over the coming 10-15 days and some companies may speed up their construction projects, and thus their demand for steel, in this period.
Turkish billet prices also seem to be influenced by the current uptrends. Based on the average price of scrap at $360-365/mt CFR, domestic billet production costs are now estimated at $520-525/mt minimum. Consequently, Turkish mills are expected to test $520-530/mt ex-works across Turkey, up from $510-525/mt ex-works seen last week.
Following the uptrend in domestic rebar seen in the past couple of weeks, Turkey’s export offers for rebar have added another $5/mt over the past week to $570-580/mt FOB for late December and early January shipments. The current price level is not considered workable in most export outlets and is formed purely on the back of higher local deal prices and rising scrap prices. In addition, Egyptian export prices for rebar are at $540-550/mt FOB, $30/mt below the Turkish targets. “The only thing that can work is that, if someone needs material in the EU, Turkey has a larger quota, on condition that its quota for the first quarter is not full yet, which most probably it is,” a trading source told SteelOrbis.
In the wire rod segment, export prices have settled at $575-585/mt FOB for late December-January shipments, stable over the past week. Some Marmara region-based mills are even testing $590/mt FOB this week, SteelOrbis has heard. The situation is again similar to the rebar segment - Egyptian mills are offering wire rod for exports at $555-565/mt FOB for January shipment. Locally, wire rod prices in Turkey have risen by $5-10/mt to $575-590/mt ex-works this week.
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