Posted on 04 Nov 2020
Turkish steel producers have further increased export quotes this week, buoyed by a significant rebound in global rebar demand.
Turkish mills are seen concluding sales to Latin America and the Middle East. Although no fresh scrap purchases at higher levels have been heard this week, mills have increased rebar quotes mostly to $460-465/tonne fob Turkey actual weight. This is up from $455-460/t fob last week due to livelier rebar demand. There are offers even at $470/t fob from some producers.
A Turkish rebar producer tells Kallanish: “Rebar prices should be higher. Considering billet prices, rebar prices should increase at least to $480/t fob.”
A Turkish mill is heard offering rebar at $590-595/t cfr to the US market, including duty fee. Buyers, however, find these levels high and see $565-570/t cfr as reasonable. Offers to Asia have also increased from $490/t cfr last week to $495/t cfr Hong Kong actual weight. Turkish mills are heard being in active negotiations with buyers in the US and Asia.
Turkish mills are seen concluding rebar sales mainly to Peru, Brazil, Panama, Lebanon and Israel. Prices are heard ranging at $450-460/t fob depending on the quantity.
Turkish mills are increasing rebar prices in their domestic market too. This, however, is instead due to the continuously weakening lira. Prices stood on Tuesday at TRY 4,520-4,630/t ex-works, including VAT. With the lira at 8.53 per dollar on Tuesday afternoon, this corresponds to $449-460/t ex-works, VAT excluded.
Producers are offering rebar at higher levels of $460-470/t ex-works. The fast depreciation of the lira, however, is concerning market players. It has fallen over -30% against the dollar since the beginning of the year and become the world’s most depreciating currency.
Scrap prices, meanwhile, remain firm, although no fresh bookings have been heard this week. Although Turkish mills continue inquiring about scrap, they are not rushing to buy scrap before seeing the result of the US election.
A Turkish mill tells Kallanish: “Exchange rates are highly volatile. The lira is sharply weakening against other currencies. Most probably the result of the election will also affect exchange rates. We wish to first see this impact.”
Scrap suppliers from the Baltic and US are seen targeting prices close to $300/t cfr Turkey for HMS 1&2 80:20. Most market participants, however, think $300/t cfr will not be accepted, at least this week, and find $294-295/t cfr more likely. The latest confirmed bookings appeared last week at $293/t cfr for HMS 80:20 from the Baltic, and $300/t cfr for shredded and $305/t cfr for bonus grade from the US.
Source:Kallanish
