Most rebar export offers from Turkey are still coming at $455-460/mt FOB for end of August-September shipments, unchanged over the past week. Demand remains limited as most key consuming destinations are reluctant to restock. Next week is foreseen to be quiet amid the holiday period. Although most market players believe levels of $440-445/mt FOB should be available for rebar, mills are not in a rush to go below $450/mt FOB unless scrap weakens further.
This week, the market has been actively discussing sizeable rebar sales to Singapore at $466-470/mt CFR on theoretical weight basis, which corresponds to around $445-450/mt FOB. Deals, however, have not been confirmed by the key sellers. “Asia is reluctant to buy today as they have good stocks of rebar, including Qatari and Emirati origin,” one of the producers said.
Demand from the EU for Turkish rebar is scarce; as of now the remaining EU quota for Turkish rebar amounts to around 60,550 mt and most buyers consider it risky to close deals. Mills report that only some buyers from Romania and Bulgaria are willing to purchase small lots, but are targeting prompt shipments. Currently, Turkey is offering September production rebar, though some small lots of August rolling might be supplied also.
Business activity in Israel is reportedly slow as well, with offers from Turkey within the range of $485-490/mt CFR. Lebanon has been receiving offers close to $470/mt CFR, but no fresh sales have been reported. No sizeable inquiries from Latin America have been heard in the market either.
Wire rod export prices from Turkey are still at $490-500/mt FOB. Some Turkish mills report that $485/mt FOB exists for small deals. Overall, the wire rod business is more active compared to rebar, with the mills mostly sold out for September production. As for the EU, the remaining quota for Turkish wire rod totals 118,433 mt, but buyers remain cautious. “Some of them place bids so low that the possible 25 percent duty does not create additional expense for them,” a Turkish producer told SteelOrbis.