Turkish mills are going through difficult times in terms of their export sales, as demand is still weak due to lower consumption in importing markets. In addition, the competition with North African suppliers - Egypt and Algeria - has remained rather tough. In the meantime, import scrap prices have not moved down in the most recent deals despite the pressure exerted by Turkish mills, and so rebar prices have remained unchanged. These levels are widely not considered workable and particularly in the domestic market buyers are reported to be cutting their purchase volumes, partly due to financial difficulties.
Currently, ex-Turkey official rebar offers are standing at $570-580/mt FOB for late September-October shipments, stable over the past week. Sources report a few mills may considered quoting $565/mt FOB for serious buyers only. Firm energy prices and the expectation they will increase, as well as ongoing currency fluctuations, are among the additional reasons why the mills are keeping their offers stable.
In the local rebar market, most Izmir and Marmara-based mills are offering official rebar prices at $580-590/mt, including Icdas A.S., unchanged from a week ago. According to sources, the workable price is at $570-580/mt ex-works for serious buyers. One Iskenderun-based mill issued its rebar price at TRY 18,800/mt ($579/mt) ex-works yesterday, with a $1 = TRY 27.04 exchange rate.
In the wire rod segment, Turkish official wire rod offers are available at $580-590/mt FOB for late September-October shipments, down by $10/mt over the past week. In the domestic market, the general wire rod price range is at $582-615/mt ex-works, with only minor changes over the past week.
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