Turkish mills are attempting to balance their production costs and longs export prices, while most international buyers are exerting pressure for further discounts to conclude deals ahead of the holiday season. Buyers are in the Balkan region are still active for in terms of inquiries, specifically buyers in Bulgaria and Romania. In addition, local rebar sales in Turkey seem to have lost momentum due to ongoing downward trend in local rebar prices ahead of the Turkish Central Bank’s interest rate decision due tomorrow, November 21.
Turkish mills’ prices seem very close to hitting the bottom when their production costs are taken into account," one source commented.
Currently, ex-Turkey rebar prices vary at $575-580/mt FOB, versus $580-590/mt FOB last week, for December shipment. A few mills are aiming to keep their export prices at $590/mt FOB, while this seems somewhat difficult under the current market conditions. " The counterbid rebar prices are at around $565/mt FOB for serious buyers," one source mentioned.
In the Turkish domestic rebar market, the workable rebar prices have fallen to $590-595/mt ex-works in the Marmara and Izmir regions, including Icdas A.S., versus $600-610/mt a week earlier. Earlier today, Kardemir issued its rebar price at around $590/mt ex-works, with around 11,000 mt of rebar rumored to have been sold so far. In addition, an Iskenderun-based mill has issued its official rebar price at TRY 25,000/mt ($604/mt) ex-works, according to today’s exchange rate of $1 = TRY 34.47. The mill's rebar price has indicated a TRY 350/mt ($10/mt) decrease compared to yesterday.
In the wire rod segment, most Turkish mills are offering at 590-600/mt FOB for December shipment, down $10/mt over the past week. " The counterbid wire rod prices are at around $570-575/mt FOB for serious buyers," one source commented. In addition, workable Turkish domestic wire rod prices vary at $595-610/mt ex-works, also down by $10/mt over the same period.