Turkey-based rebar and wire rod producers have started raising their export offers this week, feeling more confident after closing some sales. In addition, most market players believe that import scrap prices are at around their bottom level and may rebound in the coming week.
The official offers for rebar from Turkey for August shipments are at $740-760/mt FOB, up by $20-30/mt over the past week. Latin America, Canada and the US are currently the main target destinations.
Last week, a 35,000 mt lot was traded to Canada at $725/mt FOB on theoretical weight basis, corresponding to $745-750/mt FOB on actual weight basis. Negotiations continue with buyers from Latin America. One Turkish mill reportedly sold up to 60,000 mt of rebar to Brazil at $745/mt FOB last week. However, some market players believe the sale is just a rumour and, although the price seems correct, the volume is too large for the destination to be sold in one shot. In the US market, an offer from one of the Turkish mills has been reported at $770/mt FOB on actual weight basis. A deal for around 25,000-30,000 mt has been reported at $950-965/mt CFR duty paid, which is estimated by some sources as being at around $740-745/mt FOB base.
Some small rebar tonnages were also traded to the EU at around $750-760/mt FOB. However, most European buyers are waiting for the final decision regarding the quota system extension, SteelOrbis understands.
In the local Turkish market, mills’ official rebar prices have firmed up by $10/mt from the lower end over the past week to $710-720/mt ex-works due to costlier local scrap purchase prices and a few traders being active in rebar restocking.
In the wire rod export segment, some Turkish producers have started offering for August shipments at around $840-845/mt FOB, versus $820/mt FOB seen last week.