Following the recent downward trend in the import scrap and billet segments and the arrival of advantageously-priced import billet deliveries, Turkish mills are attempting to offer slightly lower prices both in the local and export longs markets. Most international buyers are postponing their purchases and believe that Turkish mills may cut their longs prices further soon. As a result, international demand is silent and the general sentiment on the demand side is negative so far. Most European buyers are on their summer holidays, while the new EU quota period will begin on October 1.
Currently, ex-Turkey rebar prices still vary at $575-580/mt FOB for late August-September shipment, while sources report a few mills may even test $570/mt FOB to attract high-tonnage enquiries. A rebar sale of 5,000 mt is rumored to Baltics at $580/mt FOB. In the local Turkish rebar market, the price range stands at $580-595/mt ex-works, down by $5/mt over the past week. The limited credit availability and the ongoing currency fluctuations restrict any possible demand improvement. It is also worth mentioning that, due to limited size availability and relatively higher rebar pricing in the Iskenderun region at around $600/mt ex-works, a few mills are attempting to sell from Izmir to Iskenderun with aggressive prices, SteelOrbis has heard. Turkey’s central bank is going to announce its interest rate decision on Tuesday, August 20.
In the wire rod segment, most Turkish mills are offering at $585-590/mt FOB for late August-September shipment, also falling by $5/mt week on week. Local Turkish wire rod prices vary at $590-610/mt ex-works, remaining stable over the past week and additional discounts on the lower end are applicable for cash payment and serious buyers, SteelOrbis has heard.