Turkish rebar producers are taking their time amid sluggish international demand, while the general sentiment on the demand side is negative for now. In fact, although the official ex-Turkey rebar export offers have increased over the past week, some producers have chosen to deal at lower levels in order to generate trade. The issue with export licenses is becoming quite serious, which limits mills’ flexibility in billet purchases. In the domestic market, some suppliers have also been selling at aggressive prices, which affects the general market mood.
Currently, rebar export prices for January-early February shipments from Turkey vary within the range of $710-720/mt FOB, up $5-10/mt over the past week. The higher end seems unworkable in the current market conditions. Last week, a rebar lot of 8,000 mt was sold to Yemen at $685/mt FOB on theoretical weight basis, equal to $710/mt FOB on actual weight, SteelOrbis has heard. "We do not expect for a quick recovery within the first quarter of this year," a source said, commenting on the overall demand situation. A few enquiries have been received from Europe within the frame of the new quota period, also from Africa and Latin America.
In the local Turkish rebar market, most mills were offering their official rebar prices at $720-730/mt ex-works yesterday, January 10. Today, Kardemir has succeeded selling around 25,000 mt of rebar at $707/mt ex-works. As a result, a few sellers have started testing $715/mt ex-works following these sales, SteelOrbis has heard.
In the wire rod segment, a few mills' offers are standing at $710-720/mt, versus $720-730/mt FOB for January-early February shipment, while slightly lower levels are on the table for serious buyers.