Turkish rebar producers are currently struggling given their sluggish domestic sales, as was expected for January and part of February, and also given their weak exports. In the meantime, the cost of production remains rather high, considering the currently strong sentiments in the import scrap and billet segments, while higher labor costs have also contributed to mills’ expenses.
Currently, ex-Turkey rebar prices are still at $565-575/mt FOB for February shipments, stable week on week. The lower end of this price range seems possible to achieve in some destinations under the current market conditions. Some inquiries keep coming from the Balkan region, including from non-EU destinations. However, Egyptian rebar and wire rod prices are still $10-20/mt lower than ex-Turkey indications.
In the domestic rebar market, mills’ official offers are at $560-585/mt ex-works, stable over the past week. The lower end of the range is heard in the Iskenderun region, up by around $5/mt, while the workable prices in the region have also improved to around $560/mt ex-works. It is worth mentioning that some producers in the Marmara and Iskenderun regions have closed their sales for today, January 14. Most local buyers are aiming to purchase at not higher than $555-580/mt ex-works depending on the region. "Trading activity has slowed down due to the adverse weather conditions and ongoing currency fluctuations, with the financial burden on the buyers' end,” a source commented. Still, some interest from companies needing to restock has been seen, with higher scrap prices urging them to place slightly higher bids, although it is agreed that this kind of demand is rather limited as of today.
In the wire rod segment, official export prices have also remained stable at $575-585/mt FOB for February shipments. Locally, wire rod prices in Turkey have risen by $5/mt to $565-585/mt ex-work depending on the region, while most of the low offers of last week have been eliminated due to higher scrap prices. In addition, Kardemir has opened its 6-27 mm 1008-1010 grade wire rod sales at $572/mt ex-works and has traded around 5,000 mt of wire rod so far, though the final tonnage has not been confirmed by the time of publication.
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