Turkish mills are seeking to keep their longs export prices stable amid roughly stable scrap price levels and their continuing high costs of production, specifically due to current energy prices. Turkish mills are still focusing on the Balkan region and Europe for the next EU quota period, while generally demand is still quite silent and most international buyers are exerting pressure for further discounts. In the Turkish domestic rebar market, the general sentiment is also negative and most buyers are postponing their purchases amid limited access to credit and the ongoing currency fluctuations.
Currently, Turkish rebar export prices vary at $590-600/mt for May-June shipments, stable over the past week. A sale of a small rebar tonnage has been concluded to Latvia at $580/mt FOB, while a sale of another rebar lot has also been rumored to Jamaica at $585/mt FOB, SteelOrbis has heard. In addition, some market players expect that buyers in the Balkan region may send enquiries for the next EU quota period starting on July 1. In the local Turkish rebar market, most mills in the Marmara and Izmir regions are still officially offering rebar at $590-620/mt ex-works, including Icdas A.S. However, the workable rebar price seems to be at $590-605/mt ex-works.
In the wire rod segment, ex-Turkey wire rod prices vary at $600-610/mt FOB, while a few mills are offering slightly higher levels. According to the Turkish Statistical Institute (TUIK), in the January-March period this year Turkey's wire rod exports amounted to 350,966 mt and the three main wire rod export destinations were Romania, Bulgaria and Spain. In addition, Bosna Herzegovina and Croatia seem to be the new wire rod sales markets this year. As a result, Turkish mills may focus on the Balkan region in order to compensate for the absence of Israel. Moreover, most mills are still offering wire rod in the domestic market at $600-640/mt ex-works, while the lower end seems to be much more workable when the reports of Kardemir’ sales of 10,000-15,000 mt of 6-27 mm SAE 1008-1010 grade wire rod are taken into account. The producer's wire rod sales have remained open since Thursday, April 25.
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