The Turkish longs export market remains quite silent due to poor international demand, while rare would-be buyers insist on discounts which Turkish mills cannot afford to give due to their high production costs. In the domestic market, activity has also slowed down a little, following recent restocking. In addition, ongoing currency fluctuations, the unclear financial situation in the country and the hot weather conditions are taking their toll on construction activities. Still, local sales are performing better compared to exports. In addition, import billet prices have rolled back a bit due to a slight cooling down in China. Import scrap prices, however, have remained stable at high levels, preventing mills from providing significant discounts for longs.
Currently, ex-Turkey rebar offers still vary at $540-550/mt FOB for late August and early September shipments, stable week on week. Business activity is rather slow these days, considering that EU countries, which are Turkey’s main customers for rebar, are mainly on summer vacation and are expected to be back for September production for the new quota period. Buyers in the Balkan region have bid prices at $530-535/mt FOB, below Turkish mills’ expectations.
In the Turkish domestic rebar market, official offers vary at $550-565/mt ex-works, down by $5/mt on the higher end over the past week, with the upper end of the range referring to the latest offers in the Marmara region. Sources report the general workable rebar prices are still at $545-555/mt ex-works, unchanged week on week, the lower end of the range referring to the latest offers in the Izmir region and the upper end to offers in the Marmara and Karabuk regions.
An Iskenderun-based mill has issued its official rebar price today at around $565/mt ex-works, stable over the past week and for an extended delivery period. According to sources, the latest workable rebar price in this region stands at around $555/mt ex-works, also rising by $5/mt week on week. Sources report a small tonnage of rebar was traded at around $550/mt ex-works in the Iskenderun region earlier today, while Kardemir has succeeded in selling around 36,500 mt of rebar at about $555/mt ex-works with its advantageous payment terms.
In the wire rod segment, most Turkish mills are offering for export at $550-555/mt FOB, also unchanged over the same period, for late August-early September shipments. In addition, workable Turkish domestic wire rod prices still vary at $550-560/mt ex-works, also unchanged over the past week.