Turkish long steel mills are attempting to generate sales in the export segment, trying to take advantage of currency fluctuations. However, overseas demand remains sluggish as most buyers prefer to wait and see ahead of the second round of the elections due to be held on May 28. A few mills are applying aggressive pricing to spur trade, while others are seeking to keep their rebar export prices at a reasonable level in line with their local rebar market pricing. The sentiment in the import scrap segment is also relatively stable when the last couple of deals are taken into account.
Currently, ex-Turkey rebar offers for June shipments are standing at $630-650/mt FOB versus $650/mt FOB indications at the end of last week. A 5,000 mt rebar lot has been traded to Yemen at $650/mt FOB on actual weight basis for June shipment, SteelOrbis has heard. In the Turkish domestic market, the main challenge is to determine a US dollar-Turkish lira exchange rate basis for trade in the unclear financial situation in the country. Most Turkish mills prefer either quoting in the local currency or to set their own exchange rate to be on the safe side. Currently, the local workable rebar price range varies at TRY 15,500-15,900/mt ($650-665/mt) ex-works when the exchange rate is taken as $1 = TRY 20.24, while a few mills are offering slightly higher levels.
In the wire rod segment, a few mills are voicing $650/mt FOB for shipments in June, down $10/mt from last week. In the Turkish domestic wire rod market, the official price varies within $665-695/mt ex-works, while Icdas is expected to revise its longs price by early next week.