The first week of May has turned out to be lively for Turkish rebar producers in terms of domestic sales, triggered by the weaker lira, bullish scrap sentiment and some panic among buyers. On the export side, however, the trade has remained weak with only small lots sold and prices have softened.
Turkish mills have managed to sell a total of at least 125,000 mt of rebar this week in the domestic market with most of the volume traded at $389-392/mt ex-works, while around 45,000 mt were sold at $380-384/mt ex-works, SteelOrbis has learned. The key reason is that the falling lira has made the prices more attractive for local customers. In addition, the downward trend in the scrap segment has turned out to be short-lived and so local customers have decided to restock before prices rebound. By the end of the week, most mills present in the market are offering rebar at $392-400/mt ex-works depending on the region, while some have decided to halt sales until next week.
Export offers for Turkish rebar for June shipments have softened by $5/mt on the upper end over the past week to $395-400/mt FOB. Some small sales were closed to Yemen at $395/mt FOB, sources report. In the wire rod segment, Turkey’s export offers are at $415-435/mt FOB, versus $430-440/mt FOB last week. A 12,000-13,000 mt sale was closed to Italy at $435/mt FOB for July and August shipments this week. In addition, some inquiries have reportedly been coming from Africa.