Turkish mills’ rebar export offers have dropped by $5/mt over the past week to $450-455/mt FOB. The Turkish producers are mainly offering for November shipments. However, most buyers are refraining from new purchases as they believe lower quotations may be seen due to negative sentiment in the import scrap segment. A 2,000-3,000 mt lot of rebar was traded to Mauritius at $460/mt FOB early this week. Also, some negotiations are underway for the US market, SteelOrbis has learned.
Local Turkish mills are trying to maintain their rebar prices at $455-460/mt ex-works. However, local traders are quoting rebar prices in line with their stock levels. Some traders are giving good discounts in order to destock and generate cash flow.
In the wire rod segment, Turkey’s export offers have also decreased, falling by $5/mt to $510-520/mt, versus $515-525/mt FOB a week earlier, mainly for shipments in late November and December. No fresh wire rod sales have been heard for now. In addition, Israel, which is a key export destination for Turkish wire rod, is under lockdown, negatively affecting Turkish wire rod sales.
The European Union’s new rebar and wire rod quota period begins on October 1. The Turkish rebar quota for EU is 76,793 mt, while the wire rod quota is 79,478 mt, until December 31 this year. The quotas are expected to be filled in the short term.