Turkish rebar producers are suffering from sluggish demand both in the local and export segments. Most overseas buyers are silent - some due to the situation in the Middle East, while EU customers will be back in the market only for the next quota period which opens on October 1, for nothing earlier than September production. Currently, Turkey is offering for July-August rolling. In the local market, daily trade has been slow due to the tough financial environment and the slow pace of construction amid current weather conditions.
The latest Turkey’s rebar export offers are in the range of $530-540/mt FOB for late July-August shipments, stable week on week. A few mills are even testing slightly below $530/mt FOB to attract customers, SteelOrbis has heard. "Demand is on the table from the Balkan region, but their target price is even below $530/mt FOB," a source told SteelOrbis. Turkey’s competitors from Egypt and Algeria are in the market with $540-545/mt and $550-555/mt FOB for rebar, respectively.
In the Turkish domestic market, official rebar prices in the Marmara and Izmir regions have fallen by $5/mt on the lower end to $530-560/mt ex-works, including the offers from Icdas A.S. The workable rebar prices in these regions have fallen $5-10/mt to $525-545/mt ex-works. Moreover, an Iskenderun-based mill has offered its rebar at around $555/mt ex-works, for an extended delivery period, down $5/mt over the week as well. According to sources, the latest workable rebar price in this region stands at around $530-535/mt ex-works, also down by $5/mt over the past week. It is worth mentioning that small tonnages of rebar were traded at $530-532/mt ex-works in this region earlier this week. In addition, Kardemir succeeded in selling around 27,500 mt of rebar at $537/mt ex-works earlier today for deferred payment. As a result, the general workable rebar price levels in Turkey’s local market are at $525-535/mt ex-works, though higher offers are also present.
In the wire rod segment, most Turkish mills are offering at $540-545/mt FOB, stable, for late July-August shipment so far. In addition, a few mills are offering slightly below $540/mt FOB, SteelOrbis has heard. In addition, the workable Turkish domestic wire rod prices vary at $535-555/mt, also falling by $5/mt over the past week.