Turkish mills have been seeking to hike their long steel export prices due to their higher production costs, specifically their higher import scrap prices. However, the construction sector seems to be slowing down due to the adverse weather conditions and some international buyers believe that the prices need to be adjusted back down in line with the market conditions. The same situation is also seen in the domestic market and most buyers there are exerting pressure for further discounts. At the same time, with import scrap prices increasing in the latest deals, Turkish steel producers may choose to reduce their production capacity utilization rates or carry out maintenance works, in order to manage their higher production costs.
Currently, ex-Turkey rebar prices vary at $550-560/mt FOB, up by $10/mt for November shipments week on week. No fresh rebar sales have heard by the time of publication. "Inquiries are on the table from the Balkans, but it might take some time to convert them into real sales due to the upward trend in rebar export prices," one source commented. In the Turkish domestic rebar market, official offers stand at $545-575/mt ex-works, up by $5-10/mt over the past week. Sources report that the general workable rebar prices in the Marmara and Izmir regions have increased by $5/mt week on week to $545-560/mt ex-works against the backdrop of the higher import scrap prices. The lower end is represented by the Izmir region, while the upper end is for the Marmara region. An Iskenderun region-based mill has issued its official rebar price on October 15 at around $564/mt ex-works for an extended delivery period, with only minor changes on US dollar basis week on week. According to sources, the latest workable rebar price in this region stands at around $550-555/mt ex-works, down by $5/mt over the past week due to the depreciation of the Turkish lira against the US dollar and sluggish demand.
Most local buyers are facing high interest rates for loans and have preferred to pay by credit card lately. However, credit card payments are also set to become more challenging as the point of sale (POS) commission rate for credit cards is about to be revised in November. Against this backdrop, most buyers are purchasing only in line with their daily needs.
In the wire rod segment, export prices have remained stable at $555-560/mt FOB for November shipments. Locally, workable wire rod prices are still standing at $550-560/mt ex-works, also stable over the past week.