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Turkey’s rebar sold to Asia owing to uncompetitive prices from China

While most foreign buyers of Turkey’s rebar keep relative silence, mills have managed to make sales to rather a non-traditional outlet – Asia. FOB-prices have not changed significantly over the week, though some mills refrain from discounts given the recent increase in import scrap prices.

The information about Turkey’s rebar sales to Asian markets, which were largely taken over by Chinese sellers for a while now, was widely discussed in the market. According to the market sources, around 50,000-70,000 t of rebar was sold to Singapore within $448-455/t CFR TW from a couple of suppliers. The mentioned range corresponds to around $425-430/t FOB AW on average, market insiders say. At the same time, the information about deals to Hong Kong for around 50,000 t at $450/t CFR is considered to be questionable as some details remain unclear. “Hong Kong was mostly buying on actual weight and if this is the case then the FOB price is way too low for a mill to confirm,” a large rebar producer expressed his opinion to Metal Expert. “If by any chance the deal was done on theoretical weight basis then the price is normal. Anything can be possible in such market,” he added.

Overall Turkey managed to win the mentioned rebar sales to the Far East owing to quite high prices coming from China – around $460-475/t FOB AW. In addition, the material from Turkey is available for January shipments and can be delivered by mid-February, market participants estimate. At the same time, China is offering rebar for shipments in February. “Turkey wins by both price and lead time, they got an opportunity – they sold. But I don’t think this destination will stick with us for a long time,” a trading source believes.

Most rebar offers from Turkey were coming in the range of $425-430/t FOB, almost the same as a week ago. Some mills are still on the higher side – $435/t FOB, while the discounts down to $420/t FOB are not considered anymore by most large suppliers. The recent increase in import scrap tags has brought some positive sentiment to the market.

From now on Turkish mills are expected to concentrate on sales to regular destinations, especially to the US. UAE buyers are currently inactive, waiting for a new price from Emirates Steel. It is worth mentioning that Turkey’s producers are optimistic about the future trend and expect the market to firm up in the coming weeks. One reason is an upturn in scrap tags, another one, which could be even more important as of today, is the slight improvement seen in the local rebar market of Turkey. Current offers from mills are coming within $420-435/t EXW depending on the region, while traders are slowly starting to restock.


Source: metal expert