Euro/US Dollar exchange rate is the highlight of the week in longs market

Turkish market, which lost its acceleration last week, started this week strongly. However, prices indicated a regression in terms of TRY as US Dollar suffered a depreciation against the TRY and the markets became stagnant again. This week, the domestic price level for 12 mm rebar was at TRY 760-770/mt ($485-491/mt+VAT). Even though the price indicated a regression in terms of TRY, the US Dollar basis prices remained unchanged due to the change in exchange rate. The prices asked for rebars in the export markets, excluding US and Gulf region, were at $490-495/mt FOB on actual weight basis. The markets, where Turkish mills can be active, may be the US market, which is quite strong, and Portuguese and Spanish markets due to the Euro/US Dollar exchange rate. Ukrainian origin rebar that showed an increase compared to the last week was offered at $425-430/mt FOB. There are not many bookings available as the prices were found high at the beginning of the week. However, the continuous increase in Euro/US Dollar exchange rate put the Italian producers on the spot. Despite the increasing prices in Algeria, Ukrainian origin rebar may have an advantage thanks to the exchange rate. Gulf region and Middle East were also calm this week. There aren't many changes compared to last week with prices remaining flat. The indications, which will show the continuous of price stability, are required as the July shipments are being talked for especially the imported material of UAE and Israel. The importers in the UAE and Israel prefer to wait as especially Turkish mills are currently not active in scrap markets. April was calm due to the long holidays in most part of the Europe. There were no major amendments seen in Italian, Greek, Portuguese and Spanish markets this week. Italian origin rebar prices retained their previous week levels. Domestic prices were at around Euro 420-430/mt. The certain players in the domestic market expect a more active market in May, which has no long holidays. Price level of AENOR-certificated rebars in the local Spanish market remained at Euro 520-525/mt level. However, the mills are expected to increase their prices next week. This situation, together with the high level in Euro/US Dollar exchange rate, may cause Spanish trading firms to direct their focus on import material. In April, general evaluation indicates that Middle Eastern and Gulf markets, which were very active in the first two weeks of April, were on standby status in the last two weeks. Market players prefer to see the direction of scrap markets before making any movements. The most part of the Europe, especially Italy, was flat in April due to the long holidays. The noteworthy country was Spain in Europe during April. Demand and prices indicated an upward trend in Spain throughout April. There were also price increases in CIS countries during April as well. The Middle Eastern demand in the first two weeks of April and the increase in Euro/US Dollar exchange rate last week and this week were seen as the major factors of the increase in Ukrainian rebar price. The other noteworthy factor this week was the increase in Euro/US Dollar exchange rate (1.25). This situation may cause a change in European import and export balance.