Turkish producers have been attempting to increase their rebar prices in the domestic market amid reduced supply, testing local buyers' reaction to firm import scrap and billet prices and the lack of billet availability during the Chinese New Year holiday. However, most local buyers do not appear ready for higher rebar prices due to the increased interest rates for bank loans. In addition, the Banking Regulation and Supervision Agency’s (BDDK) has decided to gradually reduce credit card limits above TRY 400,000 for non-frequent customers. There are still some signs of demand, though tonnages are not very high. Reducing credit card limits causes a restriction in terms of small-tonnage purchases. In the export segment, most Turkish mills prefer to maintain their existing export prices, as there is no reason for them to adjust their export prices downwards given their higher production costs as well as insufficient demand. The overall general sentiment on the demand side is still sluggish both locally and internationally.
A few Marmara-based mills are offering rebar officially at $565/mt ex-works, unchanged over the past week, while Izmir region-based mills' official rebar prices are standing at around $550/mt ex-works, up $5/mt from a week ago. One Iskenderun-based producer is offering rebar at around $550/mt ex-works, up by $10/mt over the same period due to the reduced supply in the region. The overall workable rebar prices have settled at $545-560/mt ex-works, up by $5/mt on the lower end for large tonnages, while in the Marmara region smaller lots are being offered at $560/mt ex-works, down by $5/mt week on week. Kardemir has succeeded in selling around 30,000 mt of rebar today at $545/mt ex-works with its advantageous payment terms, which may be considered a reference workable rebar price in the local market.
In the wire rod segment, official domestic prices in Turkey have settled at $555-575/mt ex-works, depending on the region, indicating an increase of $5/mt on the lower end from a week ago.
Turkish official rebar export prices are still standing at $545-565/mt FOB, unchanged for March shipments over the past week. No fresh rebar sales have been heard by the time of publication.
Turkish official wire rod offers are still available at $560-580/mt for March shipments, while the higher end seems somewhat difficult to achieve under the current market conditions. The workable wire rod export price is evaluated at $555-565/mt FOB, up by $5/mt on the lower end over the same period.