Turkish mills have been seeking to raise their longs export prices in line with relatively high scrap prices and the slight increases in their production costs. However, the recent rebar export sales volumes have been insufficient and local rebar sales also lack promise. Amid the absence of the Israeli market, Turkish producers continue to targeting the European market as well as some alternative outlets in the MENA region. In the meantime, the capacity utilization rates for rebar production remain at around fifty percent across Turkey.
Currently, Turkish rebar producers are offering rebar at $585-590/mt FOB for August shipment, rising by $5/mt over the past week amid costlier scrap. According to sources, around 5,000 mt of rebar were traded last week to Yemen at $565/mt FOB on theoretical weight basis for August shipment. Moreover, another rebar deal for 3,000-4,000 mt was done at $585/mt FOB to the United Kingdom last week. In addition, the total amount of rebar traded to the United Kingdom is around 30,000 mt since the beginning of June, SteelOrbis has heard.
In the local Turkish rebar market, most mills in the Marmara and Izmir regions are offering rebar at $585-605/mt ex-works, up $5/mt on the higher end. Kardemir today succeeded in selling around 20,000-23,000 mt of rebar at $596/mt ex-works with its advantageous payment terms.
In the wire rod segment, most mills are offering at $590-595/mt FOB for August shipment, up by $5/mt week on week. Moreover, official domestic wire rod prices vary at $590-620/mt, versus $590-640/mt a week ago. An Iskenderun-based mill also hiked its wire rod price by $10/mt to $620/mt ex-works due to costlier scrap earlier this week. In the import segment, ex-Russia offers are at around $575-580/mt CFR, while ex-Egypt wire rod is available at $605-615/mt CFR, while offers from both sources are not considered workable.