Turkish rebar producers have been aiming to offer higher long steel export prices, though international buyers do not seem ready to accept higher levels, also considering the relatively lower longs export prices from North African suppliers. Following the recent downturn in import scrap prices, most Turkish mills have stopped raising longs prices both in the local and export markets and are applying aggressive pricing policies to generate sales. In addition, limited access to loans and high loan interest rates are preventing local traders from restocking material. Moreover, the size availability issue seems to have been partially resolved recently, causing trading activity in the domestic rebar market to slow down ahead of the Turkish Central Bank's interest rate decision due tomorrow, October 17.
Currently, ex-Turkey rebar prices vary at $610-620/mt FOB, versus $620-630/mt FOB last week, for November-early December shipments. Sources report a few mills are applying aggressive pricing strategies to generate sales and are even testing below $610/mt FOB for serious buyers. Some buyers in the Balkans think that ex-Turkey rebar prices are far higher than prices from North African suppliers. For instance, ex-Turkey rebar to the Balkans is at $605-610/mt FOB, while ex-North Africa rebar offers are at $560-570/mt FOB, with the gap amounting to roughly $35-40/mt (€32-37/mt). "Most European buyers have already piled up their material since the new quota round began on October 1. Rebar order negotiations to Europe for the next quota period, starting on January 1, may start by the end of October," one source commented. In addition, most buyers in Latin America are also in wait-and-see mode following the recent sharp hike in longs export prices. The higher freight rates to Latin America also do not appear supportive of possible ex-Turkey rebar sales.
Most Turkish mills are attempting to compensate for the lack of rebar export sales with local rebar sales. As a result, although local rebar list prices have remained stable, additional discounts are available for serious buyers. Most mills in the Izmir and Marmara regions are offering at $625-650/mt ex-works, including offers from Icdas A.S, down by $5/mt on the higher end over the past week. In addition, an Iskenderun-based mill has also issued its official rebar price, at TRY 27,000/mt or around $660/mt, ex-works, at an exchange rate of $1 = TRY 34.19 today, October 16.
In the wire rod segment, most Turkish mills are offering at $630/mt FOB for November-early December shipment, stable over the past week. In addition, workable Turkish domestic wire rod prices vary at $625-645/mt ex-works, also stable over the same period.