Turkish rebar producers are mostly handling their ongoing export shipments and negotiating for possible longs sales to Europe for the next quota period in the EU. In addition, a few inquiries from the Balkans and Latin America were heard last week, though no fresh rebar sales to these destinations have been heard by the time of publication. Moreover, Syria seems to be active due its new construction projects given the improved political situation in the country. As a result, Turkish longs export prices have softened over the past week due to mainly sluggish demand and the lack of further movement in import scrap prices. Another reason is the competition with North African suppliers, who have been offering at around $10/mt lower levels for rebar and wire rod compared to the Turkish prices of a week ago.
Currently, ex-Turkey rebar prices stand at $550-560/mt FOB, down by $5/mt week on week, for June shipments. Some market players report that levels down to $540/mt FOB are also available from some mills, which is possible if cheap import billet is used for rebar rolling. According to sources, Syria has started to import rebar within the scope of its reconstruction plans and around 10,000-12,000 mt have already been sold from Turkey at $550-555/mt FOB.
In the Turkish domestic market, the general sentiment on the demand side is to wait and see as the Eid holiday will begin next week. However, the mills have been able to avoid discounts for now. Their official offers have settled at $560-570/mt ex-works, up $5/mt on the higher end week on week. In the Izmir and Marmara regions, the workable levels are at $550-565/mt ex-works, also up by $5/mt on the higher end week on week. In addition, an Iskenderun-based mill has offered its rebar prices at around $565/mt ex-works, for an extended delivery period. According to sources, the latest workable rebar price in this region has been set at around $558/mt ex-works.
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