Although Turkish steel producers are trying to increase rebar prices due to high production costs, weak demand in the local and international market continues to put downward pressure on prices.
Business activity in the local market remains limited and producers do not expect any improvement in the short term. While the domestic market continues to face difficulties, the picture is similar on the export front. Rebar prices for August shipments were quoted at $575-590/t FOB, down from $580-590/t FOB a week ago. Turkish wire rod offers, on the other hand, are standing at $590-600/t FOB for late August shipment, unchanged from the previous week.
A market representative told SteelRadar, “The stable trend continues, the situation for the domestic market is tight. We are focusing on exports during this period and that is how we closed this year,” a market representative told SteelRadar. The representative said that the slight movements in the dollar and scrap prices have revived the market a bit, but it is uncertain whether this will continue. “We are buying as much as we need, but payments and money are serious problems,” he added.
Another sector representative said, “Habaş will start production in Payas in a short time, bringing products from Izmir to Payas by sea, which will increase competition in the market. This will reduce the big difference between Izmir and Payas rebar prices, so the market is calm for now.”
Icdas has kept its official dollar rebar price unchanged at $610/mt, while buyers report that they can buy at $600/mt. Rebar prices in the Izmir region are $585/mt and those in the Marmara region are $605/mt ex-mill. On the export side, Türkiye's rebar offer prices remain flat in the $575-585 FOB range.
Despite the current challenges in the domestic market and exports, the Turkish steel industry is trying to keep its production and sales in balance. However, uncertainties in the markets and economic difficulties require the sector to take careful steps in the coming period.
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