Turkish longs producers have once again found themselves under pressure from rather high production costs originating from both import scrap and billet prices currently being quite high. However, demand for longs, especially for rebar, has been very low in export markets and insufficient in the domestic market where it has already started to face seasonal impacts. In addition, the political situation in Turkey has affected sentiments and market transactions as well as the exchange rate of the lira. As a result, the expected strengthening of prices has not been seen in deals and workable price ranges have widened.
In the Turkish domestic market, most Marmara region-based mills are officially offering rebar at $600-620/mt, versus $610-615/mt ex-works before the holiday. In the Izmir region, prices have settled at $599/mt ex-works, up $3/mt over the same period. However, the workable rebar price in this region is close to $595/mt ex-works, also up by $5/mt. In the Iskenderun region, offers are at $603/mt ex-works, also up by $5/mt over the same period. In general, the latest workable prices in the domestic rebar market have been reported at around $595-610/mt ex-works, up by $5/mt on the lower end over the past two weeks. Some sources report that maintenance at one Iskenderun region-based mill is one of the factors supporting the higher prices in the area.
Official Turkish rebar export prices for June and early July shipments have settled at $595-600/mt FOB, down by $10/mt on the higher end over the past two weeks. However, the level of $590/mt FOB is also considered workable. Most inquiries are coming from the Balkan region, including non-EU destinations. According to sources, a small lot has been booked to Romania at around $595/mt FOB for prompt shipment. Overall, demand from the EU is quiet since buyers are waiting for the quota distribution issue to be clarified. In addition, some negotiations are being held with Peru, which could soon result in deals.
Official local Turkish wire rod prices are at $605-615/mt, versus $600-620/mt ex-works before the holiday, depending on the supplier. As regards exports, mills are testing $600-610/mt FOB for June-early July shipments, down $5/mt over the same period.
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