Turkey attempts to reverse downtrend in its longs export prices

Over the past week, Turkish mills have been attempting to raise their longs export prices, given the relatively positive situation in the import scrap market and the slight rebound seen in the most recent deals. In addition, many believe that rebar prices have already hit the bottom in both domestic and export markets, while production in Turkey has been reduced recently. A rebound in demand may also be expected starting from the second half of August due to the possible start of projects in the Iskenderun region, but also due to some positive expectations in the European and Middle Eastern markets.

This week, ex-Turkey official rebar export offers vary at $555-565/mt FOB for late August shipment, while earlier some sales were reported at as low as $545/mt FOB. Moreover, sources reported a total of 15,000 mt of rebar has been traded at $560-565/mt FOB to Romania and Bulgaria this week. According to the TUIK data, the top three export destinations were Israel, Yemen and Ethiopia in the January-June period this year, while Senegal, Panama and Cyprus also seemed promising. Due to the summer holiday period, most European buyers are not in the market, while buying from Africa and the MENA region has been slow due to weather conditions and strong competition between suppliers.

In the local Turkish rebar market, most mills in the Marmara and Izmir regions are currently offering their official rebar prices at $555-570/mt ex-works, including Icdas A.S., versus $550-580/mt ex-works a week ago. In addition, Kardemir succeeded in selling around 35,000 mt of rebar earlier today with its advantageous deferred payment options, at $555/mt ex-works.

In the wire rod segment, ex-Turkey wire rod offers are available at $570-580/mt FOB, rising by $5/mt for late August shipment. In the local Turkish wire rod market, the general wire rod price range varies at $560-600/mt, including Kardemir's recent 6-27 mm SAE 1008 grade wire rod price at $560/mt ex-works, versus $570-580/mt ex-works depending on the region and from most mills over the same period.