Turkish mills have been trying to maintain their prices for longs, considering their high costs amid the current import scrap and billet price trends, while demand has been under pressure in both local and export destinations. Locally, buying activity has as expected remained limited by the ongoing financial issues in the country but also due to seasonally slow construction activity. As for exports, demand is on the low side with almost 60 percent of the EU quota utilized, while demand from Africa and the Middle East has remained limited. In addition, the ongoing unrest in Venezuela has been affecting the eagerness of Latin American buyers to place orders, according to the Turkish mills. As a result, despite their high input costs, Turkey’s longs producers have had to provide some discounts under pressure from low sales activity.
Turkish mills seem to have had a relatively better start to the new year, with CBAM seeming to gain some clarity with the new quota round starting as of January 1. Turkish mills are mainly focusing on the Balkans due to its closeness and relatively shorter delivery times. Moreover, the unrest in the Latin America, specifically in Venezuela, and the issue of Greenland in Europe have been raising the concerns of international buyers. When the positive sentiments in the import scrap segment are taken into account, longs prices are expected to increase, though rebar prices seem set to move within a certain range, with additional discounts due to the sluggish demand. Most local buyers are refraining from new purchases due to the adverse weather conditions as well as the Turkish Central Bank's interest rate decision due tomorrow, January 22.
Currently, ex-Turkey rebar offers have settled at $560-570/mt FOB for February shipments, down by $5/mt over the past week. Even slightly below $560/mt FOB seems possible depending on the region and tonnage.
In the local Turkish rebar market, a few Marmara-based mills are still testing $580/mt ex-works for official pricing, while Izmir-based mills' official rebar prices are standing at around $555/mt ex-works so far. One Iskenderun-based mill is offering rebar at around $545/mt ex-works. Due to the sluggish demand, the overall workable rebar prices seem close to $545-575/mt ex-works in the country.
In the wire rod segment, official export prices have also decreased by $5/mt to $570-580/mt FOB for February shipments. A fresh wire rod sale, of around 3,000 mt, has been heard to Bulgaria at $580/mt FOB for February shipment, SteelOrbis has heard. Locally, wire rod prices in Turkey have also fallen by $5/mt, to $560-580/mt ex-works, depending on the region.