Turkish mills are going through a silent week ahead of the Feast of Sacrifice holiday, which is contributing to an overall slowness in trading activity both for the local and export longs markets. A few mills have started to attempt aggressive pricing policies in the local market to generate cash, while offering rebar for delivery in the second half of July. Most market players are monitoring the Turkish Central Bank's interest rate decision due on June 22 and its possible outcome on the exchange rates.
Ex-Turkey official rebar offers have remained unchanged at $625-630/mt for late July shipment over the past week. Sources report that $615/mt FOB and slightly lower levels are on the table for serious buyers depending on the quantity and country. The main problem is that, even if it is assumed they offer $600/mt FOB, it is still high for the international market. Most GCC countries are already in a holiday mood, while European buyers are also getting ready for their summer holiday period. "No matter what the rebar price is, there are no longs sales this week. The rebar export price needs to fall below $600/mt FOB in order to compete with the GCC countries, but it is very difficult to offer this level under the current market conditions as well as the unclear financial situation in the country,” a market source told SteelOrbis.
In the Turkish domestic market, one Iskenderun-based mill is currently offering rebar at TRY 17,000/mt ($610/mt) ex-works, for delivery in the second half of July, with the exchange rate at $1 = TRY 23.60 today. Another Marmara-based mill is offering its official rebar price at TRY 18,050/mt ($648/mt) ex-works today. Sources say $630/mt ex-works is on the table in the Izmir region for serious buyers, though this has not been confirmed by the time of publication. Last week, the general range of domestic rebar prices in Turkey stood at $650-665/mt ex-works. "There is no significant change in the import scrap segment and demand is sluggish, so there is no room for a possible price increase these days," another source commented. In the meantime, the demand situation and buyers’ being cautious regarding the currency situation are pushing prices down for those who aim to activate sales at present.
In the wire rod segment, ex-Turkey wire rod prices still vary at $635-640/mt FOB for late July shipment, stable over the past week. In the local Turkish wire rod market, official prices are available at $645-670/mt ex-works. In addition, Kardemir has issued its 6-27 mm SAE 1008-1010 grade wire rod price at $645/mt ex-works today.