Turkey rebar: Price edges down, European deals

Turkish rebar export prices decreased today as northern European importers started finalising business after the summer holiday period.

The Argus daily fob Turkey steel rebar assessment decreased by $1.90/t to $512.30/t fob Turkey on an actual weight basis today.

Turkish $520/t fob offers were too high for importers, even though they are deemed able to pay higher in light of stronger pricing domestically and in other export markets. Marmara mill sales were made in a $510-515/t fob Turkey range today.

A northern European importer confirmed a purchase of 3,000t of Turkish rebar at $512/t fob, and a second confirmed a $515/t fob purchase for 3,500t. And a Marmara mill confirmed two sales for small tonnages to northwest Europe at $510/t and $512/t fob.

More deals were expected to have been made with European importers today. A German trader expects 60pc of the quota, more than 420,000t, to be filled in October and November. The more the EU import quota is filled, the more likely demand will increase at a faster rate and support Turkish prices.

Domestic rebar offers increased today on the back of the depreciation of the lira against the US dollar, but the increases were larger than the exchange rate movement itself.

The increase in the US dollar value of domestic rebar offers, to a scrap-domestic rebar spread of $203-208/t, is attributed to mills now being required to convert their dollar-denominated sales revenues into Turkish lira. There was no apparent increase in demand to support such an increase.

An Izmir mill was confirmed to have offered 12-30mm diameter domestic rebar at TL3,870/t including value-added tax (VAT), equating to $524.80/t ex-works excluding VAT at the time of the announcement. This was an increase of TL120/t compared to its last offer.

A Marmara mill was confirmed to offer the same price as the Izmir mill but in the Biga region, and TL40/t higher in the Istanbul region.

Contractors today said they are not willing to take on any new private construction, so while those projects already financed are still being built — stimulating some domestic rebar demand — requirements in the medium-to-long-term market appear lower.