Turkish Rebar Prices Down Again Despite Lack of Demand
- 20-Jan-2023 10:55 AM
- Journalist: Gabreilla Figueroa
Ankara (Turkey): Turkish rebar producers are facing difficulty selling their products in local and international markets. This is due to a recent halt in scrap purchases and low Steel sales, which has caused scrap prices to decrease significantly.
On Thursday, rebar export offers were mostly at $690-710/tonne FOB Turkey actual weight - down from $710-715/tonne from the previous week. Mesh-quality wire rod offers were also decreased to $700-725/tonne FOB.
A Turkish rebar producer informed: “We have never seen demand this sluggish. People do not even bother to ask about our prices as they know we are expensive. We have not sold even to Israel this week.”
A trader says: “Turkey must decrease [prices] further to be able to sell. On the other hand, buyers must be convinced that prices will not fall in Asia and the GCC. If these two materialize, buyers might start inquiring about Turkish rebar.”
Although Turkish mills had hoped to benefit from the recent rises in price from European mills, they have struggled to sell due to European buyers' lack of appetite and fierce competition. This has allowed countries such as Egypt, Algeria, Oman, Malaysia, and Indonesia to take advantage of the limited European demand with their competitive prices.
Despite an inquiry from Peru last week, the buyer is yet to make a commitment due to the current market conditions. Most people in the market believe that $680/tonne FOB is an appropriate figure.
The situation in the wire rod market is even worse than anticipated. Turkish buyers are seeking to import Iranian, Asian, Egyptian, and Russian material at lower-than-domestic rates, while exports have all but ceased.
Despite the current difficult conditions, Turkish mills believe they can become competitive again in the approaching months should energy prices drop, and scrap values dip further as expected next February.
Thursday saw low demand in the domestic market, driving prices down. Offers from mills were mostly priced at $690-705/tonne ex-works, while re-rollers and stockists that need cash have prices as low as $675/tonne. Buyers anticipate a more drastic reduction of official prices come next week.
