Most Turkish mills have been aiming to avoid major discounts in their long steel export sales since it would not create any significant demand anyway and also citing the relatively stable scrap pricing, coupled with the ongoing high cost of production and the expected rise in energy prices. In addition, the Feast of Sacrifice in mid-June is approaching, which is expected to slow down local market activity. As a result, some producers have preferred to provide minor discounts in order to secure some export sales.
Currently, ex-Turkey rebar prices vary at $575-580/mt FOB for late June-July shipments, versus $580-585/mt FOB a week ago. A few mills are still offering at $585/mt FOB, but such offers are quite rare. A sale of at least 30,000 mt of rebar has been rumored to Yemen at $570/mt FOB on actual weight basis and at around $560/mt FOB on theoretical weight basis. However, it has not been confirmed by the time of publication. In addition, slightly over 5,000 mt of rebar and wire rod have also been traded to Europe at $575/mt FOB and $585/mt FOB, respectively. A few market players comment that this cargo is destined for the UK, while others believe it might have been traded to Romania. In the local Turkish rebar market, Icdas A.S. has kept its official rebar price unchanged at $620/mt ex-works, while sources report the workable rebar prices in the Marmara and Izmir regions vary at $585-605/mt ex-works this week, only falling by $5/mt on the lower end week on week. Additional discounts are applicable for serious buyers and cash payment.
In the wire rod segment, most mills are offering at $585-590/mt FOB, down $5/mt over the past week, while a few mills are still offering wire rod at $595/mt FOB. Moreover, official local wire rod prices vary at $595-640/mt ex-works, stable over the past week. Sources report Kardemir has succeeded in selling around 16,000 mt of wire rod after its 6-27 mm SAE 1008-1010 grade price was issued at $600/mt ex-works on Wednesday, May 29, while its sales are still open.
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