The new week has started with the striking news from China where iron ore and billet prices have indicated a significant jump, impacting the Turkish market as well. As a result, Turkish mills have started testing offers up to $750/mt FOB for rebar export, though some producers say $730/mt FOB is possible. At the end of last week, most Turkish producers were out of the market, with a few indications voiced at $720-725/mt FOB, as SteelOrbis reported.
Sources report there is no active export demand at this level just yet, but to be fair the mills are well booked and have been offering for August. China’s situation is expected to give tremendous support to ex-CIS billet prices while scrap offers to Turkey have already been heard at $500-513/mt CFR for premium quality grade. Accordingly, market players foresee that the price trend will remain positive for now.
Considering the sharp price hike in the Chinese rebar market, Turkish mills are expected to conclude more rebar sales to Asia in the short term in order to take advantage of the cancellation of the Chinese tax rebate for rebar and wire rod.
In the local Turkish rebar market, most mills in the Marmara and Izmir regions are currently offering rebar at $730-745/mt ex-works. In addition, local traders’ rebar prices have settled at $718-730/mt ex-warehouse. Sources report around 20,000 mt of rebar were traded in the Izmir region at $710/mt ex-works today. Some local buyers are reluctant to conclude new purchases ahead of the end-ofRamadan holiday.
In the wire rod segment, sources report a few offers have been heard at $800/mt versus $780-790/mt FOB for shipment in late July and August, compared to the end of last week. However, around $800/mt FOB seems a bit challenging for international buyers for now. No fresh wire rod sales have been heard for now.