Turkish longs producers are still in a rather tough situation, being squeezed between low export demand, high production costs and the unclear financial situation worldwide. In addition, Russia’s latest announcement of a partial military mobilization has significantly depressed the market mood. Many fear trade will be affected by additional Western sanctions against Russia. Higher energy costs are also a major concern for orders with extended delivery terms. In addition, Turkey’s Central Bank is due to make an interest rate announcement on September 22, which may affect the local rebar trade. As a result, some Turkish mills have started closing their sales for the current week, while some of them have decided to increase prices.
In the export segment, ex-Turkey rebar offers are available at $680-690/mt, up $10/mt on the lower end over the past week. However, Turkish mills may stop quoting in the short term under the unclear situation in the world. No fresh rebar sale has been heard for now. Some sellers expect to improve their positions in the Israeli market, following the trade delegation visit from Turkey to Tel Aviv.
In the local Turkish rebar market, the general rebar price offer range is at $680-700/mt ex-works. One Marmara-based mill has closed its rebar sales in the afternoon today, while in the morning its offer was announced at $680/mt ex-works. Sources report around 11,000 mt of rebar were traded at $665/mt ex-works in the Izmir region earlier today, though this has not been confirmed by the time of publication.
In the wire rod segment, Turkish wire rod prices are standing at $710/mt FOB, versus $690-710/mt FOB a week ago. A few mills are also testing slightly higher levels amid the higher production costs.