Turkish mills are seeking to take the advantage of the euro/US dollar exchange rate and the new EU quota round which will begin on October 1. Most European buyers are asking for September shipment in order to be on the safe side. It seems that Turkish longs producers are mostly focusing on the Balkans and other European destinations given the absence of their major export destinations such as Yemen and Israel. However, the situation in the Turkish longs domestic market still does not look promising and a large number of construction companies are either filing for bankruptcy protection or facing high interest rates on bank loans, while most banks are not willing to issue credit due to the low rate of return. In addition, most local buyers are asking for additional discounts given the downward trend of import scrap prices. All in all, Turkish mills are expected to focus much more on possible longs exports due to the unclear financial situation with the ongoing currency fluctuations in Turkey. Still, there will be competition with longs sellers from North Africa in particular, and maybe even from Asian sellers.
Currently, ex-Turkey rebar prices vary at $570-580/mt FOB for September-early October shipment, stable over the past week. Moreover, a few mills are fully booked for September. According to sources, an Izmir-based mill concluded a sale of 10,000 mt of rebar to Romania and Bulgaria last week. Also a few enquiries are also under negotiation from the Balkans this week. A sale of a mixed cargo of rebar and wire rod totaling around 5,000 mt and another sale of rebar and wire rod totaling up to 10,000 mt are rumored to have been concluded this week to Bulgaria and northern Europe at $575-580/mt FOB for rebar and at slightly above $580/mt FOB for wire rod. One Marmara-based mill is expected to start its maintenance works by the end of August, which may last for 15 days. When the downward trend of import scrap prices is taken into account, a few more mills may start to implement maintenance works or reduce their capacity utilization. The Turkish Central Bank has kept interest rates stable at 50 percent on Tuesday, August 20. In the local Turkish rebar market, the price range stands at $575-590/mt ex-works, down by $5/mt week on week amid the ongoing currency fluctuations.
In the wire rod segment, most Turkish mills are offering at $585-590/mt FOB for September-early October shipment, also stable week on week. Local Turkish wire rod prices vary at $585-605/mt ex-works, falling by $5/mt over the past week.