Turkish longs mills, while still working in challenging market conditions and being squeezed between low demand and high production costs, have attempted to increase their rebar and wire rod offers. However, the reason is not a positive market expectation, but the recent sudden price rebound in China, triggered by the renewed talk of productions cuts and the subsequent upturn in futures prices.
Following the price surge in China, import billet offers to Turkey increased from $465-469/mt CFR to $480-500/mt CFR in the most recent indications. And although the levels are not considered workable, Turkish mills have still increased their finished steel offers, although it is quite doubtful so far whether the higher levels will be accepted. In the meantime, most recent import scrap deals for HMS I/II (80:20) have been closed at relatively stable prices - at $347/mt CFR from the US and $342.5/mt CFR from Europe. Slightly higher levels might be anticipated in the upcoming deals, market sources believe.
Most foreign outlets have been rather silent, especially in the EU, since it is too early to buy for the next quota period. In the domestic market, a slight increase in workable price levels has been seen since, according to sources, some of the local customers have preferred to restock now, fearing even higher prices in the future. Still, most buyers are in wait-and-see mode until the Turkish central bank's interest rate decision tomorrow, July 24.
Turkish
rebar export offers vary at $540-550/mt FOB for August shipments, up by $5/mt week on week. According to sources, a few inquiries from the Balkan region are on the table while the counter-bid prices seem closer to $530/mt FOB. "I doubt that Turkish mills are willing to accept this price level. However, international demand is already insufficient," a source told SteelOrbis. North African mills are also attempting to increase their offers slightly to $545-550/mt FOB for rebars and $550-560/mt FOB for
wire rod. Still, lower levels are considered possible by buyers.
In the local Turkish
rebar market, official offer prices have hit $540-565/mt ex-works, versus $530-560/mt ex-works a week ago, including the indications from Icdas A.S. The workable
rebar prices in these regions have risen by $5/mt to $535-555/mt ex-works. In addition, the integrated producer Kardemir has traded around 30,000 mt at $550/mt ex-works (for deferred payment) in sales opened today, July 23. Moreover, an Iskenderun-based mill is offering its
rebar at around $555/mt ex-works, for an extended delivery period, unchanged over the past week. According to sources, the latest workable
rebar price in this region stands at around $540-545/mt ex-works, up $10/mt over the week. As a result, much above $550/mt ex-works seem a bit hard for the mills to achieve, at least for now.
In the
wire rod segment, most Turkish mills are offering for export at $550-555/mt FOB, rising by $5/mt over the past week, for August shipments. In addition, the workable Turkish domestic
wire rod prices vary at $545-560/mt ex-works, also up by $5/mt over the same period.