Most international buyers are already in holiday mood as the year is about to end, so the general sentiment on the demand side is negative so far. A few Turkish mills are applying aggressive pricing strategy to generate sales ahead of holidays. World Trade Organization dispute panel has ruled against Turkey regarding a complaint by the US on some additional duties imposed by Turkey in June 2018 in retaliation for Section 232 measures on steel and aluminum imports, which can also be considered as a negative aspect in the export segment. Moreover, most logistics companies are not willing to sail on security risks along the Red Sea route. As a result, most Turkish sellers are expected to focus on Africa and Latin America region by the new year. In addition, the local rebar sales are not promising due to the sluggish demand, unclear financial situation in the country and most buyers are not willing to restock material due to VAT issues.
Currently, most Turkish mills are offering rebar at $600-610/mt FOB versus $620-630/mt a week ago, for late January-February shipments. According to sources, $600-605/mt FOB is only valid for serious buyers depending on the tonnage and region. No fresh rebar sales have been heard for now.
In the local Turkish rebar market, most mills in the Marmara and Izmir region have kept their official rebar prices stable at $620-635/mt ex-works over the past week, while additional discount is applicable for serious buyers only. Most local buyers are in a wait and see stance ahead of Turkish Central Bank's interest rate decision due tomorrow.
In the wire rod segment, offers vary at $620-630/mt FOB for late January-February shipments versus $640/mt FOB a week ago.
In the Turkish domestic wire rod market, the general price range still varies at $635-650/mt ex-works, while the higher end seems a bit difficult to achieve for now. Moreover, Kardemir has kept its prices for 6-27 mm wire rod of SAE 1008-1010 grade unchanged at $635/mt ex-works today, which is at the lower end of the general range in Turkey.
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