Turkish rebar producers are going through difficult times as import scrap prices have been inching up, while rebar exports have remained sluggish, making it difficult to balance higher production costs and the workable export prices for longs. Sources report enquiries are being received from Bulgaria and Romania, while it might take some time to generate sales as some European buyers are hesitating to purchase material and do not want to take quota-related risks. In addition, Turkish domestic rebar demand is also relatively slow due to adverse weather conditions.
This week, Turkey’s official rebar prices are stable at $565-570/mt FOB for March-early April shipments. "It [the price] depends on the mills’ order books. A few suppliers are even testing $575/mt FOB," a source told SteelOrbis. A sale of a 10,000 rebar lot has been rumored to Chile at around $560-565/mt FOB in the past week.
In the Turkish domestic rebar market, official rebar offers and workable rebar prices have respectively settled at $560-580/mt ex-works, up by $10/mt on the lower end week on week, and at $550-565/mt ex-works, down by $10/mt over the same period (in the Marmara and Izmir regions) due to the sluggish demand. Moreover, one Iskenderun-based Turkish mill has set its official rebar price today at TRY 24,300/mt ($561/mt) ex-works, for an extended delivery period, against the ongoing currency fluctuations and sluggish demand. The mill's rebar price indicates a total TRY 700/mt ($18/mt) decrease compared to Monday, February 3. The producer opened its sales earlier today and closed them in the afternoon. Most local traders are taking their time before concluding new purchases and are monitoring the import scrap price trend.
In the wire rod segment, most Turkish mills are still offering at $570-580/mt FOB, for March-early April shipments, unchanged over the past week, while some producers have been voicing offers at up to $590/mt FOB. In addition, the workable Turkish domestic wire rod prices vary at $560-580/mt, also stable week on week. It is noteworthy that an Iskenderun-based mill is carrying out 15 days of maintenance at its two facilities in February, SteelOrbis has heard from the market.
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