Turkish long steel producers have increased their local and export prices again based on higher scrap prices. However, while in the overseas markets trade remains mostly challenging with the best chances being to sell to the EU in the next quota round and to some non-EU countries as well, in the domestic market the situation is slightly better. Local buyers have restarted moderate restocking and accepted a certain price increase. Some market participants have found reasons for optimism in the Turkish government’s recently announced intention to build 500,000 social housing units across the 81 provinces of Turkey, which is expected to give some boost to the construction sector. Still, many are skeptical regarding the financing and the deadlines for these projects. It is worth mentioning that the 500,000 social housing units are planned to be built not at once but spread across several years. Most international buyers are also in wait-and-see mode following the sharp increase in longs prices in Turkey. As the new round of quota period will begin in January and the trade slows down in December, European buyers are expected to conclude their deals shortly.
Over the past week, Turkey’s rebar prices have risen by another $5/mt to $550-560/mt FOB, mainly for December shipments. The Balkan region is still the main export target for the majority of the mills with a few inquiries lately received particularly from Romania and Bulgaria. A few ex-Turkey rebar offers are available at $550/mt FOB to Bulgaria, SteelOrbis has heard. In addition, there has been talk about sales to the UK and Belgium at around the same levels, but the information has not been confirmed by the time of publication.
In the Turkish domestic rebar market, official offers have increased by $10-15/mt over the past week to $560-580/mt ex-works. Moreover, the workable levels across Turkey have also improved, by $5-15/mt depending on the region, which is a sign of cautious market support and moderate restocking. Still, trade is far from being at high levels as most buyers are purchasing according to their needs while facing persisting financial issues.
The highest increases in workable rebar prices have been seen in the Marmara and Izmir regions, to $555-575/mt ex-works, with the higher end traditionally belonging to the Marmara region-based mills. An Iskenderun-based mill has set its rebar price at TRY 28,800/mt ex-works today, November 12, up by TRY 100/mt, while keeping its price stable on US dollar basis at $568/mt ex-works due to the currency fluctuations. According to sources, the latest workable rebar prices in the region are standing at around $560-565/mt ex-works, up slightly from $560/mt ex-works a week ago.
In the wire rod segment, export prices have settled at $560-570/mt FOB for December shipments, up by $5/mt over the past week. Locally, the workable wire rod prices have also indicated a rise, increasing by $10/mt to $560-570/mt ex-works this week, settling at the same levels with as the offers for overseas markets.