Some Turkish mills raise domestic rebar list prices by $15/mt

Bursa — Turkish mills facing difficulties raising domestic rebar list prices due to slow demand and exchange rate fluctuations raised those prices by $15/mt on April 30. The moves came amid the recent rise in imported scrap prices and expectations that the removal of the export VAT rebate on Chinese steel could provide new export opportunities to Turkish producers, further pushing up export prices.

Those prices have remained generally flat at $430-$440/mt ex-works in recent weeks, depending on region and tonnage, but mills have already secured higher export prices over $650/mt FOB, as Platts has reported.

Bastug Metalurji, based in Osmaniye, southern Turkey, opened its lira-denominated domestic rebar order book $15/mt higher on April 30, offering lira-denominated 12-32 mm rebar at Lira 6,300/mt ex-works, including 18% value-added tax (VAT), or $647/mt ex-works, excluding VAT. The exchange rate was Lira 8.25/$1.

The company's 10 mm rebar list price rose by the same amount to Lira 6,340/mt ex-works and the 8 mm rebar price increased to Lira 6,380/mt ex-works as of April 30, the company informed Platts.

Some other Turkish long steel producers also increased their 12-32 mm rebar list prices to over $645/mt on April 30, while some Turkish mills, which were offering lower prices for the same grade rebar, closed their rebar order books on the same day afternoon, Platts heard.

These mills are also expected to announce higher prices in the coming days.

The lockdown announced in Turkey – starting April 29 until May 17 due to the sharp rise in COVID-19 cases in Turkey – doesn't seem to be effecting domestic steel demand as all Turkish mills, re-rollers and steel-consuming sectors like automotive, white goods and construction are continuing production during the lockdown.