Turkish rebar export activity has remained quiet apart from the numerous rumors of sales to Asia circulating once again in the market. The import scrap segment in Turkey has been inactive this week, though some cautious optimism has started to appear with the reported increase in the number of inquiries. However, at the same time the local Turkish rebar market has been depressed due to currency fluctuations, additionally undermining mills’ positions.
This week, there have been many reports of two to three cargoes of rebar sold from Turkey to Asia, in addition to the 50,000 mt sale to Singapore closed at $655/mt CFR on theoretical weight basis, which was reported previously. The new deals are reported as having been done at $650-660/mt CFR to the same market, which corresponds to around $615-625/mt FOB base. Some sources, however, state that the FOB level is around $610-615/mt in deals to Hong Kong also. It is worth mentioning that lower base price levels may be due to the high possibility of increased freight rates, especially taking into account the Suez Canal situation.
Current export rebar offers from Turkey are at $620-630/mt FOB for May shipments, in line with last week’s levels. According to market sources, one of the Marmara region-based mills has already started 10 to 15-day maintenance works, while another producer from the same area is expected to begin repairs in April for a similar period.
In the wire rod segment, sources report that a few mills are still voicing $680-700/mt FOB. However, a deal for around 2,000 mt of wire rod to Peru is reported to have been done earlier this week at $710/mt FOB for May shipment.