In this week's Turkish domestic rebar market, traders have switched to buying in order to increase their inventory levels as these are the last days of the month of August and as the current week is also the last week before the one-week-long Ramadan holiday. With the increased domestic demand, traders' rebar prices increased to TRY 1,280-1,318/mt ($731-753/mt) + VAT ex-warehouse on Monday this week. Coming to Tuesday, the increased demand has continued to be felt and traders' rebar prices have risen to TRY 1,297-1,331/mt ($741-761/mt) + VAT ex-warehouse.
On August 24, Turkish mill Kardemir opened its domestic sales for 12-22 mm rebar at TRY 1,306/mt ($746/mt) + VAT. As compared to its previous price list dated July 13, Kardemir's rebar prices have increased by TRY 47/mt ($27/mt). The producer closed its rebar sales within a few hours, after selling approximately 34,500 mt.
On the very same day, rebar prices in Turkey's Marmara region increased by TRY 26/mt ($15/mt) as compared to the last price update on July 25, reaching TRY 1,314/mt ($751/mt) + VAT ex-works. Following this price hike, in line with the softening of the US dollar against the Turkish lira, price increases have halted. Although rebar prices in Turkey's Karabuk region have been revised upwards due to supply shortages of some sizes, the mainstream price range remained unchanged and domestic rebar prices have closed the week at TRY 1,297-1,331/mt ($741-761/mt) + VAT ex-warehouse, on actual weight basis.
Given that by mid-September the Turkish construction sector is expected to emerge from the holiday mood and projects are planned to be resumed, traders have accelerated their rebar bookings ahead of the holiday. If the US dollar maintains its current strength against the Turkish lira, producers are predicted to keep their prices stable or raise them slightly, also with the influence of the ongoing supply shortages in the domestic market.
In the past week, Turkish mills have increased their rebar export offers by $10/mt as compared to last week, in line with increased domestic activity, pushing them up to $725-735/mt FOB on actual weight basis. While slightly higher offers are also available in the market, it is reported that European markets are just returning from the summer holiday and that buyers in the Middle East are currently delaying their purchases in order to see the market situation after the Ramadan holiday.