Turkish long steel exporters have found themselves under pressure from the falling markets in China, even though scrap prices have been rising slowly. Foreign buyers are cautious amid the prevailing downward expectations, while in the local market in Turkey prices on the trader end have dropped due to negative sentiment.
Currently, ex-Turkey rebar offers are available at $780-790/mt FOB, versus $780-800/mt FOB seen last week. According to sources, some traders are giving aggressive quotations below the abovementioned price range in order to generate sales. Most international buyers are delaying new purchases due to the falling prices in China and uncertainties regarding the European quota system. “Turkish mills are targeting rebar sales at high prices and lead times are also long. The Chinese situation and the lockdown in Singapore will affect fresh rebar orders from Asia in a negative way,” a source mentioned.
Israel, Yemen and Latin America currently seem to be the targeted export destinations for Turkish mills. A Marmara-based mill has concluded a 10,000 mt rebar sale to Israel at $800/mt FOB for July shipment at the beginning of this week. In addition, small tonnage rebar sales were rumoured to Yemen at $780-785/mt FOB last week. Negotiations with Latin America continue.
In the local market, most Marmara and Izmir region-based mills are offering rebar list prices at $750-760/mt ex-works, while some local traders are panicking and quoting $718-723/mt ex-warehouse today.
In the wire rod export segment, a few mills are offering wire rod for August shipment at around $840/mt FOB, versus $840-850/mt FOB last week. A 5,000 mt wire rod lot was traded to Israel at $830/mt FOB for July shipment last week. Another 15,000 mt deal was rumored at $880/mt CIF Brazil, without full confirmation by the time of publication.