Turkish rebar producers are attempting to keep their export prices stable, citing high energy costs, which are expected to increase further in October. In addition, the ongoing depreciation of the Turkish lira against the US dollar and the limited credit availability together with high interest rates are also an obstacle to domestic rebar sales. As a result, Turkish mills are still in wait-and-see mode in the export segment. Most international buyers are exerting pressure for further discounts as they are receiving aggressive rebar offers from Algeria and Egypt.
Currently, ex-Turkey rebar offers are standing at $565-580/mt FOB for October shipments, unchanged from a week ago. Sources report there is still room for additional discounts for serious buyers only. A fresh rebar sale has been rumored to Jamaica this week, while no details are available by the time of publication. In the meantime, competitors from Egypt are in the market with $560-570/mt FOB, while "Algerian suppliers are active in the UK rebar market with an offer level of around $540/mt FOB, with an advantage of $10-15/mt in freight compared to Turkey," a source told SteelOrbis.
In the local rebar market, a few Izmir and Marmara region-based mills are keeping their official rebar prices at $580-590/mt ex-works, with some at slightly higher levels. Still, the workable rebar price seems to be around $565-580/mt ex-works, SteelOrbis understands. A few Iskenderun-based mills are offering rebar at TRY 19,000/mt ($580/mt) ex-works today, with a $1 = TRY 27.30 exchange rate.
In the wire rod segment, Turkish official wire rod offers have also remained unchanged, at $580-590/mt FOB for October shipments. In the local Turkish market, the general wire rod price stands at $578-615/mt ex-works depending on the region. The workable wire rod price is around $580-600/mt ex-works, sources reported.