Turkish longs producers continue to face difficulties in generating sales amid low demand levels and the generally pessimistic market mood. The mills are relying on the domestic market, counting on the expected rebuilding projects in the earthquake-hit region. However, for now business activity is extremely slow in the local market as it seems it will take a long time to start these projects ahead of Ramadan. "Demand is close to zero both for local and international longs sales," a source told SteelOrbis. In addition, the import billet segment has been clearly signaling a downward trend, while the expectations for import scrap are also partly negative. As a result, Turkey’s longs exporters have been forced to provide discounts, while trying to maintain their previous offers in the local market.
Currently, ex-Turkey rebar offers are mainly reported at $730/mt FOB for April shipments versus $740-760/mt FOB offered in the previous week. A few inquiries are on the table from Israel right before their holiday period. Sources report even $720/mt FOB should be achievable, specifically for the Israeli market, which has been receiving similar offer levels from Italian mills. Overall, buyers from the MENA region, including Israel and Yemen, which are regular customers for Turkey, are expected to significantly slow down their activities in the upcoming Ramadan period.
In the Turkish domestic rebar market, most mills are attempting to keep their official rebar prices stable at $750-755/mt ex-works in the Marmara and Izmir regions. In the meantime, several rebar re-rollers in the Iskenderun region have closed their sales until Monday, March 27, in order to monitor the import scrap and billet prices and the Turkish central bank's interest rate decision due tomorrow, March 23.
In the wire rod segment, Turkish mills are offering at $740/mt FOB for April shipments, versus $750-770/mt FOB last week. Slightly higher levels are available only from a few mills. Turkish domestic official wire rod prices still vary at $765-790/mt ex-works, while even the lower end seems somewhat difficult to achieve due to sluggish demand and the unclear financial conditions as well as the silence in the import scrap segment.