Turkish rebar producers are seen struggling to sell in domestic and export markets. Since they halted scrap purchases amid growing scrap offer volumes in the market and weak steel sales, they have achieved a decrease in scrap prices, and have thus been able to reduce their rebar offers.
On Thursday, mills’ rebar export offers were mostly at $690-710/tonne fob Turkey actual weight, down from $710-715/t a week ago. Offers for mesh-quality wire rod, meanwhile, were at $700-725/t fob.
Export demand remained lacking throughout the week as Turkish mills’ prices are still high in the global arena compared to the competition.
A Turkish rebar producer tells Kallanish: “We have never seen demand this sluggish. People do not even bother to ask about our prices as they know we are expensive. We have not sold even to Israel this week.”
A trader says: “Turkey has to decrease [prices] further to be able to sell. On the other hand, buyers have to be convinced that prices will not fall in Asia and the GCC. If these two materialise, buyers might start inquiring about Turkish rebar.”
Although Turkish mills were hoping to sell to the EU following European mills’ price increases, they have been unable to due to European buyers’ low appetite and tough competition. Egyptian, Algerian, Omani, Malaysian and Indonesian sellers are seen meeting the limited European demand available thanks to their competitive prices.
Although there was an inquiry from Peru last week, the buyer is not rushing to book amid a weakening market.
Most market participants find $680/t fob Turkey actual weight achievable from Turkish mills in the current sluggish market conditions.
The situation in the wire rod market is even worse. Turkish buyers are heard inquiring about importing Iranian, Asian, Egyptian and Russian material at lower-than-domestic prices, while wire rod export demand is virtually zero.
Despite the current unfavourable market conditions, Turkish mills believe they can offer competitive prices in the near future if the expected additional energy price declines materialise in February and scrap values fall further.
In the domestic market, demand remained lacking on Thursday, pushing prices down. Mills’ offers stood mostly at $690-705/t ex-works, while prices as low as $675/t were available from re-rollers and stockists that need cash. Buyers are seen expecting steeper falls in official prices next week.
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Very good overview of the weekly steel market.