Expected price increases fail to materialize in Turkish rebar market

After Turkish steel producer Kardemir opened its rebar and billet sales today, May 16, at 8 a.m, buyers in the domestic market showed great interest in rebar purchases amid indications of the strengthening of the US dollar against the Turkish lira. Therefore, when Kardemir closed its sales shortly afterwards at 9.45 a.m. it had sold 41,500 mt of rebar. Rebar demand had not been so strong in the first hours of the sales, but after the weakening of the Turkish lira against the US dollar to 1.83 buyers rushed to conclude sales as they believed the US dollar would continue to gain ground against the Turkish lira, and so Kardemir closed its sales shortly afterwards.
 
However, Kardemir's domestic rebar sales of 41,500 mt at the level of TRY 1,190/mt ($650/mt) ex-works, excluding VAT, did not result in the expected price hike in the domestic market, especially in the Karabuk region. While the US dollar gained strength against the Turkish lira in the past week, it had been foreseen that local Turkish producers would open their rebar sales, revising prices upward in the domestic market and triggering an increase in traders' prices in the market. Meanwhile, at present buyers are concerned by instability in the exchange rates, insufficient demand in the market and the possibility of prices decreases. Currently, in Turkish domestic rebar market 12 mm diameter rebar prices stand at TRY 1,161-1,186/mt ($637-651/mt) ex-warehouse, excluding VAT, varying by region.