Turkish longs producers have sharply increased their export prices, driven by the 50 percent hikes for electricity and gas prices. However, there are concerns regarding whether longs demand will be sufficient to support the new price levels. If not, Turkish mills may either choose to further reduce their production levels or may consider temporary stoppages. A few of them have already reduced their capacity utilization rates, while some producers are expected to carry out maintenance works in September.
Turkish rebar export prices vary at $700-720/mt FOB for late September-October shipments, versus $645-670/mt FOB offered a week ago. Some producers have stopped offering for now, trying to evaluate the market situation. “We are taking our time and are not willing to give discounts due to the unclear financial situation in the country and higher energy prices,” a source said. Overall, the market players are trying to gain a clearer picture of the market. Many view the new offer levels as somewhat overprice, stating that the estimated cost increase due to the latest hike will be around $20-25/mt, while export rebar prices have risen by $50-55/mt. Some livelier demand is expected to be seen from the EU and the Middle East, while some lots may be sold to Latin America and the US. “European price increases and production cuts could lead to a situation where, even with the duty, ex-Turkey offers may at times be workable,” a trader told SteelOrbis.
Local Turkish rebar market prices currently vary at $700-710/mt ex-works versus $650-670/mt ex-works last week, following Icdas’s recent price hike by $40/mt to $710/mt ex-works earlier today. Most local traders are monitoring the import scrap and billet price trends for now.
In the wire rod segment, one Marmara-based mill has increased its wire rod price by $60/mt to $750/mt FOB for October shipments, while a few mills have stopped quoting wire rod prices for now.