Turkish mills have been experiencing a silent week amid the sluggish international demand and unclear market environment. The new trade agreement between Europe and the US is expected to take effect from August 1 and may affect business activity. The US-Brazil talks are also an important point since they affect BPI shipments into the US and, consequently, the situation in the American scrap segment.
The Turkish domestic rebar market is also quiet as it is the end of the month and most buyers are refraining from new purchases, having restocked earlier and having accepted higher prices. Additionally, demand in the local market is affected by the ongoing fires in many regions of Turkey caused by the hot weather conditions. The ongoing currency fluctuations have become a chronic issue as well.
Currently, ex-Turkey rebar offers still vary at $540-550/mt FOB for August shipments, unchanged over the past week. However, most buyers in the international market are in wait-and-see mode so far. According to sources, there have been sales to non-EU Balkan countries and Ethiopia at around $540/mt FOB, but this information has not been fully confirmed by the time of publication. Negotiations with the EU are on hold due to the vacation season and talks will be restarted for deliveries in October, in the next quota period.
In the Turkish domestic rebar market, official offers vary at $550-570/mt ex-works versus $540-565/mt ex-works a week ago, with the upper end of the range referring to the latest offers in the Marmara region. Sources report the workable rebar prices are at $545-555/mt ex-works, up by $10/mt over the past week. In the Izmir region, the main producer officially stands at $550/mt ex-works for rebar, up $5/mt from the end of the previous week.
An Iskenderun-based mill has issued its official rebar price today at $565/mt ex-works, up by $10/mt over the past week and for an extended delivery period. According to sources, the latest workable rebar price in this region stands at around $550-555/mt ex-works, also rising by $10/mt over the past week.
In the wire rod segment, most Turkish mills are offering for export at $550-555/mt FOB, also stable over the same period, for August shipments. In addition, the workable Turkish domestic wire rod prices vary at $550-560/mt ex-works, up by $5/mt on the lower end week on week.