Turkish rebar producers have been attempting to keep their longs export prices stable due to higher energy costs and ongoing production cuts, while international buyers are exerting pressure for additional discounts amid the negative sentiment in the import scrap segment in Turkey. As of today, September 7, some mills have decided to decrease their prices slightly, given the recent decline in ex-US scrap deals. Turkish domestic demand for rebar is somewhat better and a few rebar deals have been heard recently. Longs export trading activity is nearly at a standstill, contrary to previous positive expectations.
The current export price level for Turkey’s rebar is at $690-700/mt FOB, down by $10-20/mt over the past week. Some producers, however, are still trying to maintain levels around $720/mt FOB, but it is questionable if such a price is workable. Trade has been quiet overall and only one sale has been rumoured as closed to Yemen at $680-685/mt FOB. However, it has not been confirmed by the time of publication. A 3,000 mt rebar lot was also sold at $680/mt FOB to Africa for October shipment.
In the domestic market, Turkish official rebar offers are at $700-710/mt ex-works in the Marmara and Izmir regions, stable over the past week. However, according to sources, around 30,000-40,000 mt of rebar were sold at $680-690/mt ex-works in the Izmir region earlier this week, though some players believe this tonnage is too high when the current economic conditions are taken into account. The workable level is below $690/mt ex-works and a small tonnage of rebar has been traded at $685-690/mt ex-works today.
In the wire rod segment, most Turkish mills are offering at $700-740/mt FOB, versus $750/mt FOB for October shipments, over the past week. Senegal, Morocco and the Ivory Coast were the destinations to which trades were in July. “Demand is generally sluggish, maybe small tonnages of wire rod may be exported to Morocco and Senegal,” a source told SteelOrbis.