Turkey’s rebar export prices have softened over the past week but have still remained at high levels, supported by the high-priced import scrap bookings concluded previously. While it is quite challenging for Turkish mills to sell rebar at the current levels, they have been actively booking import billets during the past few weeks, with most of the deals concluded at $485-520/mt CFR depending on the origin and delivery periods. Since import scrap prices are not expected to collapse anytime soon, billet imports at the mentioned levels are expected to provide Turkish mills with more space for providing discounts on their longs export prices without losing their margins. With the average import scrap price at $385/mt and the rolling cost from scrap to rebar at approximately $210/mt, the current Turkish rebar prices, though high according to the market, are not so profitable for the mills. Currently, however, there are some small inquiries heard from European customers, which may result in deals for the EU quota period due to begin on October 1. In the local market in Turkey, the difficult domestic economic and financial situation is still taking its toll on daily business activities.
Currently, ex-Turkey rebar offers vary at $575-580/mt FOB for August shipments, down $5/mt week on week. "As most European mills are either on holiday or carrying out maintenance, this may give an opportunity for possible rebar export sales in August," a source told SteelOrbis. In the Turkish domestic rebar market, prices vary at $585-600/mt ex-works, stable over the past week. A Marmara-based mill has set it extras for 10 mm rebar at TRY 1,400/mt ($35/mt) and for 8 mm at TRY 1,600/mt ($40/mt), while special lengths and 36 mm and 40 mm as well as B500B & B 500C grade extras have been settled at TRY 1,400/mt ($35/mt) amid the ongoing currency fluctuations. The general sentiment for demand is still negative.
In the wire rod export segment, most Turkish mills are offering wire rod at $590-595/mt FOB for August shipment, unchanged week on week. A few mills are even testing slightly higher levels. However, these seem difficult to achieve for now. Today, July 31, Kardemir issued its 6-27 mm SAE 1008-1010 grade wire rod price at $590/mt ex-works. Most local buyers consider this price level workable as it is close to the lower end of the general price range in Turkey which varies at $590-610/mt ex-works , down by $10/mt on the higher end over the past week, depending on the region. The mill has succeeded in selling around 5,000 mt of wire rod so far, SteelOrbis has learned.