Turkish rebar prices decrease in deals to Asia, local demand weak
Negative developments in the segment of imported scrap led to a weakening of demand for Turkish rebar in the local market, as buyers expect bigger discounts from producers. At the same time, mills managed to sell several large batches to customers from Asia, albeit at lower prices.
Most official rebar export offers from Turkey were heard at $620-635/t FOB for March-April shipment, down by $15-20/t over the week. Some suppliers are still offering at $640/t FOB, but this level is not considered workable. Turkey sold three rebar lots for March-April shipment to Hong Kong at $655/t CFR AW (around $620/t FOB), Metal Expert has learnt from market sources. The total tonnage of these deals is estimated at 120,000 t. In addition, last week a Marmara-based mill sold 50,000 t of rebar to Singapore within $635-640/t FOB for April shipment. Buyers from Latin America, Africa, and Lebanon are also showing interest in Turkish material, but no deals have been reported yet.
Domestic rebar prices in Turkey are set at $635-650/t EXW versus $655-680/t EXW at the end of last week, Metal Expert has learnt. Some higher levels are available, mainly in Marmara. Small deals were reported in the Marmara region, but overall business activity in the local market was weak due to the expectations of even greater price reductions. “Many manufacturers are still keeping prices high despite the drop in imported scrap. However, discounts may be granted in negotiations,” a local trader commented.