In this week's Turkish domestic rebar market, rebar sales opened by local producer Kardemir on Wednesday, May 16, at TRY 1,190/mt ($650/mt) + VAT ex-works attracted significant demand, causing sales to be closed within a short time of the opening. Even though the producer's rebar price was above initial expectations, the depreciation of the Turkish lira against the US dollar was one of the main reasons for the high demand for Kardemir's rebar sales, as Kardemir's price was then found to be reasonable by the market. However, the sluggishness observed in Turkey's rebar market is preventing the stronger dollar from impacting domestic rebar prices.
Over the previous two days, traders' 12 mm rebar prices in the Turkish domestic market were standing at about TRY 1,161-1,186/mt ($634-648/mt) + VAT ex-warehouse. After a softening of TRY 10/mt registered today, 12 mm rebar prices in the Turkish spot market have declined to TRY 1,153-1,178/mt ($630-644/mt) + VAT ex-warehouse, depending on the region.
SteelOrbis has learned from market sources that some orders for Kardemir's rebar sales on Wednesday were canceled afterwards, with the total sales volume decreasing from 41,000 mt to 38,000 mt.
Anticipations of a further price softening and low demand are causing traders to delay their rebar bookings. Market players state that current rebar demand is even below demand levels in winter months, adding that they are not expecting any improvement in the short term.
$1 = TRY 1.83