Posted on 22 Aug 2025
Turkish mills’ long steel sales remain unsatisfactory, with volumes still subdued.
Mills’ official export quotes for rebar on Thursday were mostly at $540-550/tonne fob Türkiye actual weight and at $545-560/t fob for mesh-quality wire rod, notes Kallanish. These are unchanged from last week.
Some small-volume sales were concluded this week to Romania, Bulgaria, the Balkans, Ethiopia and Senegal, but larger orders remain absent. Amid weak global sentiment, buyers continue to limit purchases to urgent requirements, and transactions above 15,000 tonnes have long been non-existent.
Although some Turkish mills are considering selling below $540/t, including $535/t for relatively larger volumes, some are resisting declining their prices below $540-545/t fob for rebars. Recent sales appear to be mostly for small volumes with sales prices mostly not below $540/t fob.
Instead of pushing prices further down, Turkish mills are increasingly reducing utilisation rates to cope with poor demand, as they are already operating at a loss. One major Marmara-based mill, running at lower capacity, has reportedly begun laying off workers.
Meanwhile, mills struggling to generate margins are exerting pressure on scrap prices. The abundance of offers in the market is providing Turkish producers with additional leverage.
In Türkiye’s domestic market, weak demand amid financial constraints continues to pressure prices. Mills have lowered rebar offers to $530-550/t ex-works, depending on payment terms, and are extending payment deadlines in an effort to stimulate sales.
Mills are closely watching the Turkish Central Bank’s loan decision on 11 September, with expectations centred on a 300 basis point rate cut. Before this materialises, the market seems unlikely to recover in the near term.
Source:Kallanish
