After suspending their scrap bookings for a long time, Turkish mills finally returned to the scrap market this week and new scrap prices have emerged. However, this has not brought the expected increase in Turkish rebar market activities.
Since end-users in the Turkish rebar market have not returned to the market for new purchases, the Turkish mills' scrap bookings have not had a stimulating effect on the market. While some local producers have maintained their rebar prices at previous levels, mainstream producer prices have been at TRY 1,064-1,068/mt ($666-669/mt) + VAT. Last week, the Turkish central bank cut interest rates causing the US dollar to strengthen against the Turkish lira. This temporarily led to increased activity in Turkish traders' sales. However, after these sales, end-users still failed to return to the market and, thus, rebar prices have not increased. Despite high rebar inventories, Turkish traders do not foresee a decline for the rebar market in the coming period. Nevertheless, some traders who are destocking their materials are observed to be giving offers below the mainstream price range. This week, spot rebar prices in the Turkish market have been in the range of TRY 1,068-1,093/mt ($669-685/mt). ($1 = TRY 1.597)
This week, Turkish mills have witnessed reduced transaction activity in their major export markets, while rebar export offers have been standing at $690-700/mt FOB. The Turkish mills have concluded some low-volume rebar transactions to the African market; however, demand in this region has remained sluggish.
This week, Turkish rebar export offers to the UAE and the Saudi Arabian market have been at $705-710/mt CFR on theoretical weight basis. In the meantime, following last week's transactions to Singapore, this week Turkish mills' rebar export offers to this market have been standing at $720/mt CFR on theoretical weight basis. The Iraqi market also remained silent this week and producers' rebar offers in Turkey's Iskenderun region at $710-720/mt ex-works have only attracted limited demand.
This week, Turkish steel producers have also given rebar offers for the North American market, particularly to Canada, and have concluded some transactions. In the latest transaction from Turkey to Canada, a cargo of 30,000 mt rebar was sold at $705/mt CFR. Meanwhile, some higher priced transactions have also been concluded to this market.
In the Turkish rebar market, demand from buyers has not showed any improvement after steelmakers' scrap bookings, with buyers preferring to monitor price developments instead. Reaction to Turkish mills' anticipated new rebar export offers in Turkey's key rebar markets, including the Middle East, is expected to become clearer next week.