Posted on 04 May 2021
Turkish mills' rebar list prices jumped $40 on week to $670/mt ex-works and above with major Turkish mill's new price hikes on May 3.
The moves came amid the rise in imported scrap costs and expectations that the removal of the export VAT rebate on Chinese steel could provide new export opportunities, further pushing up prices.
Those prices have remained generally flat at $630-$640/mt ex-works in previous weeks, depending on region and tonnage, although mills have secured higher export prices above $650/mt FOB, as Platts has reported.
Major producer Icdas raised its rebar list prices by Lira 420/mt and started offering 12-32 mm rebar at Lira 6,560/mt ex-works Biga including 18% value-added tax (VAT) on May 3, or $670/mt ex-works excluding VAT, $40/mt higher week on week. The exchange rate was Lira 8.30/$1.
The company's offer prices for the same grade of rebar in the Istanbul region were around $10/mt higher at around $680/mt ex-works.
Bastug Metalurji, based in Osmaniye, southern Turkey, also opened its lira-denominated domestic rebar order book with sharply higher prices on May 3 offering lira-denominated 12-32 mm rebar also at Lira 6,580/mt ex-works, including 18% value-added tax (VAT), or $672/mt ex-works, excluding VAT.
The company's 10 mm rebar list price rose to Lira 6,620/mt ex-works and the 8 mm rebar price increased to Lira 6,660/mt ex-works as of May 3.
Other Turkish long steel producers also increased their 12-32 mm rebar list prices to $670/mt ex-works and above on May 3.
Turkish mills have also begun to test the export market with prices at $670/mt FOB and over, depending on destination and tonnage, Platts also heard.
Noting recent billet sales concluded at $625/mt ex-works, a sales manager of a Turkish long steel producer told Platts May 3 that scrap prices over $450/mt generally could not last long, rebutting some market chatter that scrap prices could reach $500/mt CFR in a bullish pricing sentiment.
Source:Platts
