Quotes of Turkish rebar grow against the backdrop of the high cost of scrap metal

Turkish mills raised their long steel quotes due to scrap prices rising last week.

On Thursday, mills' export offers were mostly $630-645 per ton FOB Turkey compared to $615-630 per ton a week earlier. Offers for wire rod, meanwhile, were at $640-660/t FOB.

Turkish mills are seeing a slight uptick in rebar sales following a recovery in scrap prices. Yemeni buyers, who had been waiting for price cuts, returned to the market and purchased nearly 60,000 tons of rebar. Israeli buyers continue to buy, while some sales have been made to Romania.

Meanwhile, one Turkish plant is actively working in the South American market. Although volumes remain limited, the mill has been able to secure satisfactory tonnage from various buyers in the region. Last week, the western plant completed the sale of nearly 7,000 tons of rebar to Chile. Demand in Africa remains sluggish, but one plant has completed sales of fittings to Senegal.

Selling prices started at $615/t on an actual weight basis last week and have been gradually increasing.

After the sale of Libyan rebar to Lebanon this week, Lebanese buyers are interested in Turkish rebar, although financial problems in the country remain.

Despite the increase in activity, Turkish factories are not confident in the sustainability of current sales, as the already high prices in Turkey have now risen even more compared to competitors.

One Turkish mill told Callanish: “China's economic recovery last week caused activity here, but China is not showing stable signs. On the other hand, prices are much lower on the global stage. The flame of this fire is likely to be extinguished quickly.”

The trader says that much cheaper prices from the Middle East and China are available in the global market, and Turkish factories are likely to lose more markets at current prices.

In the domestic market, demand for rebar from sellers declined after Tuesday, while demand from end users is still lacking. On Thursday ex works prices were $632-645/t.

Scrap metal prices, on the other hand, continue to rise, making it less likely that Turkish mills will cut prices. HMS 1 and 2 80:20 cargo of British origin was negotiated at $344 per tonne in Turkey, while Romanian-origin coastal scrap was negotiated on Wednesday at $325 per tonne per cubic meter. fr. Although there are rumors about the sale of oil of Baltic origin at a price of $350 per ton, this information has not yet been confirmed.