Turkish rebar producers are going through difficult times due to their relatively higher export prices on the back of their high production costs. In addition, North African suppliers continue to enjoy a price advantage in the traditional sales markets and are offering quite aggressive prices. In the meantime, in the Turkish domestic rebar market, the construction sector is expected to slow down due the adverse weather conditions, specifically in the eastern region of Turkey. The US elections will be held on Tuesday, November 5, and most market players are also keeping an eye on the issue and its possible impact on the US dollar, trade barriers and import scrap prices.
Currently ex-Turkey rebar offers vary at $600-610/mt FOB for late November-December shipments, down by $10/mt on the higher end week on week. According to sources, a few mills have even been testing $590/mt FOB depending on the region and the tonnage, for serious buyers only, in order to generate sales. The regions of the Caucasus, Africa and the Balkans seem to be the main focus of Turkish suppliers for possible rebar exports. Azerbaijan and Montenegro are being targeted in particular. Sources report buyers in Central and Southern America, particularly in Jamaica, are also active in concluding purchases these days. At the same time, possible rebar sales also face high freight rates to Latin America, with Turkish rebar export prices already seeming high for the international longs market.
The workable rebar prices in the Izmir and Marmara regions are at $610-625/mt ex-works, versus $620-630/mt ex-works last week, including offers from Icdas A.S. In addition, an Iskenderun-based mill has also issued its official rebar price, at TRY 26,500/mt ($645/mt) ex-works, at an exchange rate of $1 = TRY 34.26 today, October 31. The main reason for such a high rebar price is the limited size availability in this region and the economic uncertainty ahead of the US elections. In addition, it is rumored that the tax exemptions implemented in the wake of the February 2023 earthquakes in Iskenderun will be terminated by the end of the current year.
In the wire rod segment, most Turkish mills are offering at $610-620/mt FOB, for late November-December shipment, stable over the past week. In addition, the workable Turkish domestic wire rod prices vary at $620-635/mt ex-works, down by $5/mt on the higher end over the same period.