As general business conditions are getting more and more challenging every day as a result of the Covid-19 outbreak, trade opportunities have been consistently shrinking, in the Turkish rebar segment specifically. According to sources, domestic construction activity, which has nearly stopped these days, is naturally hardly generating any significant rebar demand. The number of export options has been limited with no sizeable volumes traded after the earlier reported deals to Asia.
In such a situation, the workable level for Turkish rebar exports has moved down to $390-400/mt FOB for April-May shipments, while earlier mills were refusing to go below $410/mt FOB. It is worth mentioning that the low price levels are mainly voiced by traders and only some producers, while some mills are still quoting $5-10/mt higher. “I believe mills will also be ready for $390/mt FOB and even below if anyone comes with a firm bid,” a source said. Some supply limitations may be in place as there is a lot of talk of temporary shutdowns across Turkey.
In the wire rod segment, export prices have dipped to $415-420/mt FOB. Some mills are still offering $440/mt FOB and above, but admit they have not been able to sell at these levels.