Turkish mills are rushing to conclude longs sales both in the local and export segments ahead of the Feast of Sacrifice holiday (June 16-19) and the summer holidays in July are also approaching in Europe. As a result, a few Turkish mills are offering aggressive prices to generate sales, while special payment advantages may also be provided depending on the supplier, SteelOrbis has heard. Most international buyers are exerting pressure for further discounts due to the rather negative sentiment in the import scrap segment.
Currently, ex-Turkey rebar prices are at around $575-585/mt FOB June-early July shipment, versus $585-600/mt FOB a week ago. According to sources, even $560/mt FOB on theoretical weight basis to Yemen is rumored, though this may be considered a special case due to the high risks given the unclear situation in the Red Sea. A sale of a small rebar tonnage, 1,000-5,000 mt, has been concluded to Albania at $570-575/mt FOB, while a sale of another rebar lot has also been rumored, to Latin America, at the same price range. However, it has not been possible to confirm the final details by the time of publication.
In the Turkish domestic rebar market, the general official rebar prices vary at $585-620/mt ex-works, including Icdas A.S.’s price, down $5/mt on the lower end over the past week. In addition, the workable rebar prices seem close to $585-600/mt ex-works for serious buyers, also falling by $5/mt on the higher end from a week ago. A few mills have already started maintenance works, while other mills are also expected to work with reduced shifts during the Feast of Sacrifice holiday. This situation has caused a few mills to attempt to increase their rebar prices, specifically in the Iskenderun region, while the overall limited size availability for local buyers is also a factor in the price increases. Kardemir has updated its rebar price to $604/mt ex-works, down $6/mt week on week and has succeeded in selling around 15,000 mt due to its advantageous payment terms. Most buyers are also waiting for the Turkish central bank's interest rate decision due tomorrow, May 23.
In the wire rod segment, most mills are offering wire rod at $595-605/mt FOB for June-early July shipment, down $5/mt over the past week. In addition, most mills are offering wire rod in the domestic market at $595-640/mt ex-works, down $5/mt on the lower end. Kardemir's 6-27 mm SAE 1008-1010 grade wire rod price stands at $605/mt ex-works and its sales are still open. When the export price level is taken into account, the levels that seem workable are $595/mt ex-works and slightly higher.
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