Turkish rebar producers have found themselves once again squeezed between the increased cost of production and pressure from buyers to decrease prices in both domestic and international markets. While sentiment in the import scrap and billet segments has been weak and lower prices are expected to be seen shortly, the rebar trade has been silent with no major deals reported. Buyers in the local market have managed to push for lower prices from mills and, moreover, new discounts are expected due to weaker pricing on the retail side. The financial situation in Turkey remains tough and is expected to continue to weigh on the steel business and the construction segment for a while yet.
While at the end of the past week it was possible to get $680-700/mt FOB from Turkish mills, today, according to sources, $670/mt FOB levels are also achievable. As a result, since mid-July ex-Turkey rebar prices have dropped by $25-30/mt.
In the domestic market, a few mills are offering rebar at $670-680/mt ex-works, down by $40/mt over the past week. Most local traders are refraining from large-volume purchases to be on the safe side in case local rebar prices fall further in the coming days and they are cautious in the current unclear financial environment and the silence in the rebar export segment.
In the Turkish wire rod export segment, a few mills are offering at $720-740/mt FOB, versus $740-750/mt FOB last week, for September shipments.