Posted on 25 Nov 2022
Turkish mills have increased their long steel quotes due to the rises seen in scrap prices last week.
On Thursday, mills’ export offers were mostly at $630-645/tonne fob Turkey actual weight, up from $615-630/t a week earlier. Offers for mesh-quality wire rod, meanwhile, were at $640-660/t fob.
Turkish mills have seen a slight increase in rebar sales following the recovery in scrap prices. Yemeni buyers, who were waiting for prices to bottom, have returned to the market and concluded almost 60,000 tonnes of rebar purchases. Israeli buyers are seen continuing to purchase, while some sales have been concluded to Romania.
One Turkish mill is meanwhile seen to be active in the South American market. Although volumes remain limited, the mill managed to secure a satisfactory tonnage from various buyers in the region. Last week, a western mill concluded almost 7,000t of rebar sales to Chile. African demand remains sluggish, but one mill concluded rebar sales to Senegal.
Sales prices are seen to have started from $615/t fob actual weight last week and increased gradually.
Following Libyan rebar sales to Lebanon, Lebanese buyers are seen inquiring about Turkish rebar this week, although financial issues continue in the country.
Despite the pick-up in activity, Turkish mills are uncertain about the sustainability of current sales as Turkey’s already high prices have increased even further now compared to competitors.
One Turkish mill tells Kallanish: “The Chinese recovery last week triggered the activity here but China is not providing stable signs. On the other hand, there are much cheaper prices in the global arena. The flame of this fire is likely to go out fast.”
A trader says there are much cheaper prices available from the Middle East and China in the global market, and Turkish mills are likely to lose more markets at current prices.
In the domestic market, stockists’ rebar demand is seen to have slowed after Tuesday while end-user demand remains absent. On Thursday, prices stood at $632-645/t ex-works.
Scrap prices, on the other hand, continue to rise, making Turkish mills less likely to decrease prices. A UK-origin HMS 1&2 80:20 cargo was concluded at $344/t cfr Turkey, and Romania-origin short-sea scrap was concluded at $325/t cfr on Wednesday. Although there are rumours of a Baltic-origin sale at $350/t cfr, this is yet to be confirmed.
Source:Kallanish
