Issue 20, 2024 - This week's editorial: Turkish market weakness adds pressure to low international consumption

Demand for longs in the global market is sluggish, while the limited number of buyers are exerting pressure on prices. Turkish long steel producers have been forced to decrease their quotes despite not securing their targeted prices from scrap suppliers. Turkish mills’ official rebar quotes stood on Thursday last week mostly at $580-590/tonne fob Turkey actual weight, and at $590-600/t fob for mesh-quality wire rod, each down $5-10/t from the previous week’s range. Bids are coming in mostly at below $580/t fob actual weight for rebar. Although sales at $570/t and $575/t are rumoured to have taken place, $570/t seems unlikely today unless
Turkey achieves $370/t cfr Turkey for scrap.

According to a trader the level of $570/t fob should be accepted today as the market will drop below these levels soon. A Yemeni buyer is heard to have bought 10,000 tonnes of rebar at $580/t fob actual weight. A Marmara mill is heard to have sold 5,000-8,000t to Costa Rica, while two other mills sold to Chile at $580-583/t fob.

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