Turkish mills are going through difficult times due to the uncertainty regarding the Strait of Hormuz and the positive sentiments in the import scrap segment, with scrap prices predicted to remain firm in the short term. However, international buyers are not ready to pay higher prices for rebar and are insisting on additional discounts, not leaving room for any upward price push. As a result, even though import scrap prices have increased, Turkish mills are so far not able to reflect the higher costs in their export prices.
Most European buyers are postponing their purchases in order to have a better understanding of the new quota details which become effective from July 1. During the IREPAS conference in Amsterdam held on April 26-28, a few rebar sales are rumored to have been done, though the final details of confirmed deals have not yet been released to the market. The official Turkish rebar export prices for May shipment are at $595-615/mt FOB, down by $5/mt from a week ago. A fresh rebar sale of 8,000-10,000 mt to Serbia for May shipment is rumored to have been concluded at slightly below $590/mt FOB, but it has not been confirmed by the time of publication.
In the local Turkish market, most Marmara-based mills are officially offering at $610-620/mt ex-works, unchanged from the last week’s levels. Additional discounts are only applicable for high tonnages and cash payment. In the Izmir region, prices have settled at $600/mt ex-works, down by $3/mt over the same period. In the Iskenderun region, rebar producers are offering at $592-595/mt, falling by $16-17/mt week on week. In general, the latest workable prices in the domestic rebar market have been reported at close to $590-605/mt ex-works, down by $10/mt on the lower end. In addition, Kardemir succeeded in selling around 57,500 mt of rebar at $595/mt ex-works level today, April 29. The mill's rebar price is also within Turkey’s overall workable rebar price range.
In the wire rod segment, Turkish domestic official prices are standing at $610-620/mt ex-works depending on the region, falling by $5/mt from a week ago. The workable wire rod export prices are evaluated at $605-615/mt FOB, also down by $5/mt over the same period. Turkish mills are testing wire rod export offers at $610-620/mt FOB, also down by $5/mt week on week, for May shipment.