Turkey’s rebar export offers have indicated a sharp drop since early March, partly due to the collapse in import scrap deal price levels. In addition, demand globally remains limited with only Asian buyers being ready to deal for large volumes.
As a result, some Turkish mills have successfully taken advantage of the demand coming from Asia. This week, a 50,000 mt cargo was traded to Singapore at $429/mt CFR on theoretical weight basis or at around $410/mt FOB. Last week, two lots of the same volume were sold again to Asia, though at a somewhat higher level. One of them was booked by Singapore at $445/mt CFR theoretical weight or slightly above $420/mt FOB Izmir. Another lot was sold to Hong Kong at $460/mt CFR or around $420/mt FOB.
As a result, Turkish rebar export prices have been settled this week at $410-420/mt FOB for April-May shipments, having dropped by $15-20/mt since early last week. Local Turkish rebar demand is also limited these days due to the impact of the coronavirus. Local traders are currently offering rebar at $398-408/mt ex-warehouse and are providing additional discounts in order to boost sales and to maintain their cash flow.
Ex-Turkey wire rod prices have fallen by $10-15/mt over the past week to $440-455/mt FOB for late April-May shipments. Turkish mills are expected to take care of the previously booked cargoes and to try to generate new sales if prices are workable.