Turkish mills are attempting to conclude export deals to Europe, the Balkan region and certain Middle Eastern countries ahead of the holiday season in December. "We only have two weeks maximum in order to finalize the deals" one source commented. Higher production costs, specifically raw material and energy costs, still create difficulties for Turkish mills in competing with northern producers, which have also been keeping their offers firm lately. In the Turkish domestic market, adverse weather conditions including floods have had a negative impact on the demand side, just like the unclear financial situation in the country.
Currently, ex-Turkey rebar offers are standing at $580-600/mt FOB for late December-January shipment, stable over the past week. One Marmara-based mill has recently sold around 10,000 mt of rebar to the Balkan region at $585/mt FOB, SteelOrbis has heard. Although the higher end of rebar prices has hit $600/mt FOB, it seems that the workable rebar export prices stand at around $580-585/mt FOB so far.
In the local Turkish rebar market, most mills are aiming to stabilize their rebar list prices, apart from a few mills which are raising their rebar prices significantly, with one Iskenderun-based mill even setting its rebar price at $605/mt ex-works. As a result, most mills in the Marmara and Izmir regions are offering rebar at $580-605/mt ex-works, rising by $5/mt on the higher end. Although Turkish mills want to pass on the higher import scrap and billet costs to their local rebar prices, demand is not supportive so far. Kardemir issued its rebar price at $592/mt ex-works today and succeeded in selling around 26,000 mt with its advantageous payment terms.
In the wire rod segment, most mills are offering at $590-600/mt for late December-January shipment, remained unchanged from a week earlier. In the local Turkish market, wire rod prices vary at $590-625/mt ex-works, also stable over the past week. Moreover, Kardemir has also raised its 6-27 mm SAE 1008-1010 grade wire rod price by $5/mt to $610/mt ex-works today. However, the workable price seems somewhat closer to the lower end.
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