Turkish rebar mills are facing pressure from international buyers to give additional discounts due to the pessimistic outlook in the import scrap segment, while demand overall is slow in the key sales outlets. However, despite the weaker scrap segment, Turkish production costs are still high, holding mills back from providing discounts. In the domestic market, the workable price levels have also softened, since buyers are counting on the weaker prospects for the scrap market.
Ex-Turkey rebar offers are at $535-540/mt FOB for October shipment, down by $5/mt on the higher end week on week. The Balkan region still seems to be the main target for possible export sales, but the workable levels are hardly above $530/mt FOB for rebar. However, the attempts of major EU mills to increase their offers after the holidays may support import price levels as well. North African mills, who are the main competition for Turkish mills in Europe, are offering at $530-540/mt FOB for rebar and $550/mt FOB for wire rod, for October and November shipments.
In the Turkish domestic rebar market, the official offers still vary at $535-555/mt ex-works. Sources report that the general workable rebar prices in the Marmara and Izmir regions have fallen by $5/mt on the higher end over the past week to $530-545/mt ex-works. An Iskenderun-based mill issued its official rebar price on September 17 at around $555/mt ex-works for an extended delivery period, up by $3/mt week on week. According to sources, the latest workable rebar price in this region stands at around $535-540/mt ex-works, down by $5/mt week on week.
In the wire rod segment, export prices have also softened by $5/mt on the higher end to $545-550/mt FOB for October shipments. Locally, the workable wire rod prices are standing at $540-555/mt ex-works, stable over the past week.