The increases seen in the raw material and semi-finished markets in recent weeks have led Turkish producers to increase their merchant bar prices.
While demand for both local production and imported merchant bars in Turkey is stronger compared to local demand for rebars, the increased merchant bar prices are mainly driven by higher raw material and semi-finished product price levels. Meanwhile, it can be said that demand on the export side is in better shape compared to local demand.
Local merchant bar prices in the Turkish domestic market were last week in the range of TRY 752-810/mt ex works. Actual deals were concluded at prices different from the list prices, as per common practice.
On the export side, producers are pushing for price increases while various prices can be heard as per market, tonnage and customer. Turkish producers have continued to sell to the Middle East and North Africa at the price range of $530-550/mt FOB. In particular, deals and offers to the Middle East are heard at different levels compared to those made to other markets. The tonnages booked are for container-based shipments, and offers are currently given for shipment in January.
Turkey will have a short week this week prior to the religious holiday and it is expected that the raw material cost situation will continue to influence merchant bar price levels in the post-holiday period.