Turkish rebar export prices have lost $5/mt since last week and have come to $410-420/mt FOB. Suppliers have managed to conclude some deals for small tonnages, but overall demand has stayed subdued. Some positive signs have appeared in the market as some changes may be seen in US trade measures.
Turkish mills have concluded a deal to Pakistan for 1,500 mt at $415/mt FOB for October shipment earlier this week. Moreover, market resources indicate that a Turkish mill located in the Iskenderun region has concluded a deal to Lebanon at $395/mt FOB theoretical weight, which is equivalent to $415/mt FOB on actual weight basis for 10,000 mt for October shipment.
EU rebar buyers are still on hold for new rebar purchases as the remaining quota for Turkish rebar is at around 20,671 mt. As a result, there has been no interest in $410-420/mt FOB from Turkey. European buyers are not willing to pay 25 percent safeguard duty.
Market sources also indicate that Turkish exporters are seeking to replace the 25 percent duty on steel imports in the US with a quota system. Although the details are not clear yet, given the examples of Brazil and Argentina, a possible quota volume could be calculated based on the average of the last three years’ steel exports from Turkey to the US, SteelOrbis understands, which could be positive for Turkish mills.
Turkish wire rod to be shipped in October has been available at $445-460/mt FOB, $7.5/mt below last week’s levels. Some Turkish mills are trying to offer slightly above $460/mt FOB. However, international buyers continue to exert pressure for a further decrease. According to the sources, Turkish mills concluded a deal to Israel for 2,500 mt of wire rod at $445/mt FOB Turkey and 2,500 mt of rebar at $415/mt FOB for October shipment earlier this week. Additionally, a deal to South America for 8,000 mt of wire rod was signed at $448/mt FOB for October shipment earlier this week. In the EU, the remaining quota for Turkish wire rod stands at around 117,846 mt out of 312,081 mt, and 3,149 mt of wire rod are waiting at EU ports for customs procedures, leaving some space for sales.