Turkish mills are attempting to reflect rising import scrap and billet prices in their longs export and domestic offers. While in the local market the higher levels are gradually being accepted and there are some sales here and there, partly since there is no import option at least for rebar, on the export side the market has yet to react actively. Most Turkish producers are not willing to offer for long lead times for exports since they risk significant additional price increases for scrap, which will squeeze their margins. As a result, for now their main focus is the local market, where buying could have been even better if not for currency fluctuations, official interest rate policies, and adverse weather conditions. As for exports, however, some export options may also be seen given the limited allocation from North Africa.
Ex-Turkey rebar offers are now at $600-610/mt FOB for late December-January shipments, up $10-20/mt over the past week. A few mills may attempt to voice levels $10/mt higher though they may be difficult to achieve for now. Buyers in the Balkan region may consider restocking material ahead of the holidays and some activity may be seen in western Europe as well. One Marmara-based mill is rumored to have sold a fresh small cargo of rebar to the Balkan region at $610/mt FOB, however it has not been confirmed by the time of publication. “Most buyers have already piled up material, so it seems a bit difficult to conclude deals to this region,” a source said. However, while both of the Algerian mills are out of the market now, and Egypt is offering at $600-610/mt FOB, Turkey may have a chance to compete due to shorter lead times.
In the local Turkish rebar market, most mills’ list rebar prices are at $600-620/mt ex-works, while a few are testing $625/mt ex-works. Even one Marmara-based mill is rumored to have set its rebar price at $630/mt ex-works, however it has not been confirmed by the time of publication. Sources report an Izmir-based mill succeeded in selling around 15,000 mt of rebar at $595/mt ex-works yesterday, November 5, and raised its rebar price to $600/mt ex-works. In addition, one Marmara-based mill also sold around 5,000 mt at $620/mt ex-works yesterday. Most mills in the Marmara and Izmir regions were offering rebar at $580-605/mt ex-works last week. However, even a sale of 20,000 mt of rebar seems not to have been sufficient to compensate for the current weak export sales.
In the wire rod segment, most mills are offering for export at $620/mt FOB versus $590-600/mt FOB a week earlier, again for late December-January shipments. In the local Turkish market, wire rod prices vary at $610-645/mt, versus $590-625/mt ex-works last week. Moreover, Kardemir has also raised its 6-27 mm SAE 1008-1010 grade wire rod price by $15/mt to $625/mt ex-works today. However, the workable price seems somewhat closer to the lower end of the abovementioned range.
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