Turkish mills continue to struggle to export their long products, while still facing limited demand from most potential sales destinations. In addition, in some markets competition from Asian and MENA region-based suppliers is quite strong, as mills are also forced to export due to low trade in their domestic markets. As a result, Turkey has managed to attract only a few sales opportunities. In the local rebar market in Turkey, the overall sentiment is quite negative following the election and given the ongoing currency issues, which weigh on the regular market activities. As a result, most local buyers are refraining from new purchases due to liquidity issues and credit repayments.
This week, Turkey’s rebar export prices have stabilized at $630-640/mt FOB, for cargoes for June-July shipments. According to sources, 6,000 mt have been traded to Yemen at $630/mt FOB for shipment in July, while another 3,000 mt have been sold to Djibouti at the same FOB-based price. Some market players consider the fact that price levels are being gradually accepted is good sign in the current market conditions. In addition to the abovementioned deals, there has been talk about a rebar sale to Chile in mid-May, but the details have not been disclosed by the time of publication, although some sources assume the price should have been at $620/mt FOB or even slightly below.
Locally, most mills in Turkey are offering rebar at $640-650/mt ex-works, while a few producers are insisting on slightly higher levels. In the past week, the official domestic rebar price was at around $640-660/mt ex-works. For now, the general market sentiment is negative due to the unclear financial situation in the country.
In the wire rod segment, a few mills are offering at $640-650/mt for June-July shipment, down $10/mt over the past week. In the local Turkish wire rod market, the official wire rod price varies at $652-675/mt ex-works, versus $655-680/mt a week ago, while one Iskenderun-based mill has stopped quoting any wire rod price today.