The pressure on Turkish longs exporters from high costs, low demand and tough competition globally has lately been exacerbated by a dramatic drop in prices in the import scrap segment. As a result, prices for rebar and wire rod have gone down quite sharply, in both the domestic and export markets, while buyers have been refraining from purchases, expecting prices to continue falling. Confidence and the future outlook have been further dented by the latest economic turmoil.
Currently, ex-Turkey rebar prices vary at $550-570/mt FOB for late April-May shipment, down by $20-25/mt week on week after import scrap prices plunged and given the current low import billet offers. Most international buyers are exerting pressure for additional discounts due to the pessimistic outlook. A few rebar enquiries are on the table from the Balkan region, from Kosovo and Bosnia and Herzegovina, SteelOrbis has heard. Additionally, export prices from North Africa in some cases have dropped to $530-540/mt FOB, making it hard for Turkey to compete.
In the local Turkish rebar market, official offers and workable prices have settled at $555-595/mt ex-works, down by $15/mt on the lower end depending on the region. In the Izmir and Marmara regions, the levels are at $550-560/mt ex-works, also falling, by $15-30/mt amid the weaker import scrap prices and sluggish demand. Sources report that a few mills are even testing below $550/mt ex-works in order to generate sales. According to sources, around 10,000 mt of rebar were traded at around $550/mt ex-works in the Izmir region last week. In addition, an Iskenderun-based mill has offered its rebar at around $565/mt ex-works, down by $15/mt week on week, for an extended delivery period, based on the current exchange rate of $1 = TRY 38. According to sources, the latest workable rebar price in this region stands at around $550/mt ex-works, down by $10/mt week on week at the same exchange rate, for cash payment only.
In the wire rod segment, most Turkish mills have also cut their offers, by $20/mt to $565-575/mt FOB, for late April- May shipments. In addition, workable Turkish domestic wire rod prices vary at $560-585/mt, versus $575-595/mt ex-works a week earlier.
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