[Ferro-Alloys.com]

 

An apparent change in the Turkish government's direction on monetary policy brought confusion to the country's domestic rebar market over the last couple of days. This caused most market participants to take an even more cautious approach, given a lack of certainty on exchange rates in the near future. But some buyers in the Izmir region were prompted to make purchases after a long silence, as mills lowered their dollar-denominated offers while prices jumped in lira terms.

 

The Argus daily Turkish domestic rebar assessment fell by $5/t to $597.50/t ex-works excluding value-added tax (VAT), while the lira equivalent increased by TL255/t to TL23,100/t ex-works, as the unofficial, widely traded exchange rates diverged sharply from the central bank's rate.

 

The government's monetary authority imposed restrictions on lira-denominated borrowing on 5 March, for the first time in several months, marking an apparent departure from recent attempts to stick to more orthodox monetary policy. The lira weakened sharply in unofficial markets, with steel mill sources indicating they were able to buy dollars for around TL32.22:$1, compared with the official rate of TL31.72:$1.

 

A mill in the Izmir region sold 9,000t of rebar to domestic buyers for $595/t ex-works on 6 March, following a sale of 4,000t by another mill in the same region yesterday, also at $595/t ex-works.

 

A mill in the Iskenderun region sold approximately 2,000t of rebar at TL23,200/t ex-works including VAT, which is equivalent to around $600/t ex-works excluding VAT, given the recent plunge in the value of the lira. Other Iskenderun mills offered rebar in a range of TL23,200-23,500/t ex-works.

 

In the Marmara region, a major mill remained willing to sell for $600/t ex-works, with two other mills lowering their workable prices by $5/t to $605/t and $610/t ex-works.

 

In the export market, rebar was readily available from certain suppliers for $590/t fob, with market participants deeming it likely that lower prices would be accepted in the event of firm bids. Buyers indicated $580/t fob or lower as reasonable, but most are likely to wait for a change in direction before buying, with March-loading rebar cargoes still in strong supply from Turkey after a long period of slow sales.

 

The Argus daily export assessment for rebar fell by $5/t to $585/t fob Turkey.

 

In the wire rod segment, mesh-grade material was offered to European buyers at $605/t fob, while drawing quality wire rod was offered at €590/t cfr Italy, equivalent to approximately $615/t fob Turkey.

 

The weekly fob Turkey assessment for mesh-quality wire rod fell by $5/t to $605/t. Argusmedia