Turkish rebar producers are seeking to increase their export prices, partially due to the acceptance of higher import scrap prices, but also due to the bullishness in China and limited domestic supply. Still, most international buyers are in wait-and-see mode due to the weak demand in their local market, the attractive prices from North Africa and the unclear situation regarding China’s pricing policies after its holiday. In addition, the increased unrest in the MENA region is affecting the mood in the market. In the local Turkish market, on the contrary, demand has improved somewhat, due to seasonal reasons, the lack of certain sizes in some regions, and a general belief that the market will not see a significant downturn in prices for a while.
Currently, ex-Turkey rebar prices vary at $600-610/mt FOB for late October-November shipments, versus $590-595/mt FOB a week ago. Most European buyers are busy with customs clearance operations as the new EU quota period has started as of October 1.
Sources report that a total of around 30,000 mt of rebar has been traded at $595-600/mt FOB to Palestine and Ethiopia this week, though this has not been confirmed by the time of publication.
In the Turkish domestic market, rebar prices have increased by at least $15-20/mt over the past week while offers in the Marmara region are at $620-635/mt ex-works, including Icdas A.S. A large Izmir region-based mill in the meantime, who was offering $600/mt ex-works previously, has closed its rebar sales today, October 2. The main reason for the higher prices and better demand is the limited supply and size ability in the country, coupled with slightly increased construction activity related to seasonal factors. A Samsun region-based mill has even set its extras for 8 and 10 mm at TRY 1,600/mt (roughly $40/mt) and TRY 1,300/mt (roughly $32/mt) based on the exchange rate of $1 = TRY 34.23 today. The general Turkish domestic rebar price range was at $600-620/mt ex-works last week. "The mills are cutting their production capacity utilizations in order to put pressure on local buyers," one source told SteelOrbis. In addition, Kardemir succeeded in selling around 27,000 mt of rebar earlier today at $629/mt ex-works, supported by its advantageous payment terms.
In the wire rod segment, most Turkish mills are offering at $610-620/mt FOB for late October-November shipments, up $10-15/mt over the past week. In addition, Turkish domestic wire rod prices vary at $620-630/mt ex-works except in the Izmir region, versus the general wire rod price range at $605-615/mt ex-works a week ago. Lately, an Iskenderun region-based mill issued its wire rod price at $630/mt ex-works, indicating a rise of $20/mt compared to last week.