Turkish longs producers remain squeezed by firm import scrap prices and sluggish international demand. As a result, they are not able to increase their longs export prices despite their high production costs and, moreover, some of them have decided to provide discounts. In the domestic market, rebar demand is also weak, and so, taking into account their slow exports, a lot of mills continue to work at reduced capacity utilization rates.
Currently, Turkish rebar export prices vary at $690-710/mt FOB, versus $705-710/mt FOB for February shipment a week ago. By the beginning of this week, 3,000 mt of rebar were traded to Israel at $685/mt FOB for February shipment. In the domestic market, a few mills are applying aggressive prices and are testing $690/mt ex-works to generate sales. However, most of the mills in the Marmara and Izmir regions are officially offering at $710/mt ex-works, versus $710-730/mt ex-works a week ago.
In the wire rod segment, mills' official offers have remained unchanged at $710-720/mt for February shipments, while sizeable discounts, of $10-20/mt, are applicable for serious buyers only. By the beginning of the week, around 5,000 mt of wire rod were traded to Israel at $695/mt FOB for February shipment.