Political tensions in Iraq exert negative influence on Turkish rebar market

Due to the ongoing political turbulence and threat of civil war in the northern Iraq in the past week, the local rebar market in the region has relapsed into silence, while the rebar market in Turkey's Iskenderun region, where prices had remained firm throughout the year amid strong export activity to northern Iraq, has started to weaken. Yesterday, November 29, rebar offers of rolling mills in the Iskenderun region decreased to the level of TRY 1,068/mt ($597/mt) +VAT ex-works, while traders in the region were offering rebar at TRY 1,064-1,072/mt ($594-599/mt) +VAT ex-warehouse.
 
The stagnancy in export activities to Iraq has not only negatively impacted Turkey's Iskenderun region, but has also exerted an unfavorable influence on the overall Turkish rebar market. As Iraq is the most important rebar export destination for Turkey - 888,328 mt of rebar were exported from Turkey to Iraq in the first nine months of the current year - any delay in the resolution of the current tensions may increase the downward pressure on Turkish domestic and export prices, and especially in the Iskenderun market.