International longs buyers are taking their time to monitor the rapid currency fluctuations and higher production costs in Turkey. Most Turkish suppliers are attempting to increase their export prices for rebar and wire rod, again due to higher scrap prices, higher energy costs, and also due to the high freight rates which are expected to remain strong until the end of the year.
Ex-Turkey rebar export offer prices are mainly standing at $700-720/mt FOB for late November-December shipments today, versus $690/mt FOB seen last week. According to sources, Turkish mills are selling small tonnages at higher prices specifically to Yemen and Israel. Some observers say around 70,000-80,000 mt of rebar were traded to Yemen within the past two weeks, while some say this tonnage is hardly achievable for this market. A 5,000-10,000 mt rebar sale to Costa Rica has been rumored at $715-720/mt FOB, extras included. In addition, a small tonnage of rebar has been sold to Israel at $690/mt FOB recently, SteelOrbis has learned. Another 1,000-2,000 mt lot of rebar has been traded to Mauritius this week at $700-705/mt FOB for November-December shipment.
In the Turkish domestic rebar market, Turkish mills in the Izmir and Marmara regions are currently offering rebar at around $700-720/mt ex-works, versus $680-690/mt ex-works a week ago. Sources report one Izmir-based mill has increased its rebar price to $710/mt ex-works, after selling around 15,000 mt of rebar at $700/mt ex-works earlier today.
In the wire rod segment, a few Turkish mills are offering at $800-820/mt FOB versus $790/mt FOB, a week earlier, for December-Early January shipment. No fresh wire rod sales have been heard for now.