Turkish mills have increased their rebar export prices by $10/mt over the past week, to $640-660/mt for June shipments due to long lead times and higher scrap price levels in deals last week.
It is worth mentioning that the gap between the Turkey’s local and export rebar prices has widened over the past week to a minimum of $20-25/mt since domestic levels are at $620-635/mt ex-works from mills and at $613-619/mt ex-warehouse from traders. The main reason is the aim of suppliers to generate sales in the local market with aggressive pricing amid economic and financial uncertainty. “Most local traders restocked when the exchange rate was at $1 = TRY 7.50. Then, the local demand became weaker, and they have even quoted lower US dollar prices and are taking advantage of the currency fluctuations in their local currency-based sales,” a source told SteelOrbis. In addition, the recent rebar export bookings to Far Eastern markets since the beginning of this month have supported Turkish mills in offering higher export prices
However, most rebar buyers seem not to be willing to pay higher prices and are postponing their rebar purchases. “Turkish mills are quoting rebar at $650-660/mt FOB to Lebanon, and, while the current local Lebanese retail rebar price is at around $645/mt including taxes, it is very difficult to compensate for the cost of replenishment at these levels,” one source stated.
According to sources, a few rebar deals were concluded to traders last week at $630-638/mt FOB without any details disclosed by the time of publication. In addition, some sales are rumored to have been closed this week to Yemen, with slightly higher levels are also available. Sources report ex-Turkey rebar export offers are at around $640-650/mt FOB on actual weight basis to Yemen, netting back to $617-620/mt on theoretical weight basis, with slightly higher levels also available, for June shipments.
In the wire rod segment, a few Turkish mills are still voicing $710-725/mt FOB for June shipments, while slightly higher levels are available for extended deliveries. No fresh wire rod sales have been heard so far.