Most Turkish mills were offering aggressive prices to generate sales last week, while they are now showing some resistance on prices due to a slight recovery in import scrap prices. The general sentiment on the demand side is negative as most buyers are exerting pressure for further discounts. "Turkish mills have lost their competitiveness in exports due to their currently high production costs, specifically energy cost, and the unrest in the Middle East is also an obstacle to possible sales," a source mentioned.
Currently, ex-Turkey rebar prices vary at $580-585/mt FOB June-early July shipments, only up by $5/mt on the lower end over the past week. A few mills were offering rebar at $575/mt FOB and small-tonnage rebar lots were traded to the Balkan region. However following the slight upward movement in import scrap prices, mills are aiming for above $575/mt FOB this week. A high-volume rebar sale is rumored to Yemen at $570/mt FOB this week, but it has not been confirmed by the time of publication, while some sources comment there are hardly any buyers for large lots in Yemen due to the risky conditions there.
In the Turkish domestic rebar market, most mills are officially offering at $590-620/mt ex-works, including Icdas A.S. Sources report that the workable rebar price is at around $590-605/mt ex-works, up by only $5/mt over the past week, while additional discounts are also applicable for serious buyers. In addition, around 10,000-15,000 mt of rebar were traded at $600/mt ex-works in the Marmara region by the end of last week. Most customers are purchasing only in line with their daily needs and are not in a rush to restock material due to the high interest rates for bank loans and the overall difficult financial situation in the country.
In the wire rod segment, most mills are offering at $590-595/mt FOB for June-early July shipment, versus $595-605/mt FOB a week earlier. In addition, most mills are offering wire rod in the local market at $595-640/mt ex-works. The integrated producer Kardemir has cut its 6-27 mm SAE 1008-1010 grade wire rod price by $5/mt to $600/mt ex-works today and its sales are still open. According to sources, Kardemir's price level is workable owing to its advantageous payment terms.
.jpeg)