Turkish rebar producers have raised both their domestic and export offer prices by $5/mt amid costlier scrap, though international buyers do not seem ready for price increases so far. Turkish is struggling to conclude sales to Europe due to the uncertainties relating to CBAM requirements and environmental product declaration (EPD) details. The US market lacks promise due to Section 232 and antidumping duties. Israel is missing due to conflict in the Middle East. More Turkish mills seem to be focusing on Yemen due to livelier reconstruction in the country and, though most Yemeni buyers are willing to purchase material from Turkey, logistics at Yemeni ports is a major challenge. "Demand exists, but the conflict in the Middle East and the risky position at Yemeni ports are making it harder even if payments for orders have already been received,” a source told SteelOrbis.
Currently, Turkish rebar offers are available at $540-545/mt FOB for October-early November shipments, up by $5/mt week on week amid the relatively positive sentiment in the import scrap segment following the IREPAS conference in Munich on September 28-30. Sources report that a sale of around 15,000 mt has been concluded to Romania at $550/mt CFR, which is approximately $530-535/mt FOB. Some sources say the situation relating to this deal is very difficult as the quota for the new EU quota period is expected to be exhausted quickly, while others say that, if the buyer believes there will be room within the quota, it may be possible. Moreover, a sale of 10,000-15,000 mt of rebar is rumored to have been done at $520/mt FOB on theoretical weight basis to Yemen last week. The competition is getting fiercer in Yemen as this export destination is limited for Turkish mills.
In the Turkish domestic rebar market, official offers stand at $535-560/mt ex-works, up by $5/mt on the higher end week on week. Sources report that the general workable rebar prices in the Marmara and Izmir regions have risen by $5/mt over the past week to $535-550/mt ex-works. The lower end stands for the Izmir region, while the upper end is for the Marmara region. A fresh sale of 8,000 mt of rebar is rumored to have been done at around $535/mt ex-works in the Izmir region this week. While it has not been officially confirmed by the time of publication, it is safe to say that $530/mt ex-works is no longer available in the domestic market due to the positive sentiment in the import scrap segment. An Iskenderun region-based mill has issued its official rebar price on October 1 at around $548/mt ex-works for an extended delivery period, down by $5/mt over the past week. According to sources, the latest workable rebar price in this region stands at around $540-545/mt ex-works, up by $5/mt week on week. Most buyers are in wait-and-see more and are only purchasing in line with their daily needs, while some local traders seem to be restocking material to be on the safe if the import scrap prices increase further. The general concern regarding the rapid depreciation of the Turkish lira against the US dollar and the limited access to bank loans, which are at high interest rates, are the main bottlenecks in this volatile market.
In the wire rod segment, export prices have also risen, by $5/mt to $550-555/mt FOB for October-early November shipments. Locally, workable wire rod prices are standing at $545-555/mt ex-works, rising by $5/mt on the lower end over the past week.