Poor demand from consumers in the Middle East and North Africa has slowed Turkish rebar sales to the region for May production, Turkish mill and trader sources said on Thursday May 3.
“Mills have only just returned to their desk after a national holiday in Turkey at the start of the week. Turkish mills are [not] expected to return to the scrap market [until] the end of this week at the earliest. Mills are trying to increase their sales prices for rebar,” said a Turkish scrap supplier.
Turkish rebar has been sold at $660-670 per tonne fob main Turkish port for May production and shipment, compared with $655-670 fob previously.
Some mills have been offering rebar at $680 fob. Metal Bulletin has not heard of any sales at the higher offer price due to weak demand.
“This week, the rebar price is at $670 fob in the Iskenderun region and the Marmara, Izmir region is selling at $660 fob. I heard of a 10,000-15,000 tonne sale to Egypt this week,” said a second trader based in Istanbul.
“The domestic market has been very quiet this week. Consumption levels in the local market have fallen,” he added.
Demand for Turkish rebar has dwindled as most major buyers in the Mena region have been purchasing small parcels from local suppliers who can deliver small tonnages on short lead times, Metal Bulletin was told by Persian Gulf market sources.
“I heard that one client in Egypt bought 40,000 tonnes but that was about 10 days ago at $670 per tonne cfr Egypt. Sales have been made to the Middle East this week for small parcels,” said a source from a Turkish producer.