Turkish mills are still having difficulties concluding decent volumes of rebar sales in the export markets due to the unclear trend of import scrap prices, firmer billet prices and geopolitical unrest, particularly in the Middle East. As a result, most Turkish longs suppliers have been focusing on nearby destinations like the Balkans and Europe.
Currently, ex-Turkey rebar prices vary at $615-625/mt FOB, rising by $5/mt over the past week for February-early March shipment. A few mills are still quoting at slightly higher levels. Sources report around 30,000-35,000 mt of rebar lot has traded to Peru at $620/mt FOB this week. Last week, a 3,000 mt rebar lot was reported to have been sold to Romania at $615/mt FOB. Sources report a total of 6,000 mt of rebar was traded to the Balkan region at $610-615/mt FOB, including the aforementioned deal. In addition, 5,000 mt of rebar were also sold to the UK at $620/mt FOB last week, SteelOrbis has heard. “The ongoing situation in Yemen and the nearby region certainly endangers vessels and crews and has already resulted in higher freight rates or the unwillingness of the parties to use the Red Sea for maritime shipping operations. There is not only a surcharge for container usage, but also some lack of containers for other destinations,” a producer told SteelOrbis.
In the Turkish domestic rebar market, most mills in the Izmir and Marmara regions are offering official rebar prices at $625-640/mt, versus $620-645/mt ex-works a week ago. However, the lower end seems a little more workable under the current market conditions.
In the wire rod segment, offers vary at $635-645/mt FOB for February-early March shipment, up by $5/mt over the past week. In the Turkish domestic wire rod market, the general price levels vary at $630-660/mt ex-works, up by only $5/mt on the lower end from a week earlier. The higher end still seems difficult to achieve. In addition, Kardemir's price for 6-27 mm wire rod of SAE 1008-1010 grade is still at $645/mt ex-works.
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