Prices soften in the Turkish rebar market

This week, rebar price levels have continued to soften in the Turkish domestic market. Varying according to the region, rebar prices of local traders have been at TRY 955-975/mt ($635-650/mt) excluding VAT. The lack of activity in the market continues under the impact of slow conditions in the construction industry. 
 
There has also been some softening in the scrap bookings concluded in the Turkish market this week. In addition, finished steel prices have also been under pressure from the weakening US dollar. All these factors have contributed to lower price levels in the domestic market. Although the construction season has started, end-users have still not increased their activity and thus the domestic market still lacks the desired revival.
 
Turkish rebar producers have not been so active either in the export markets this week. Turkey's most important export market, the Middle East and North Africa (MENA) region, is still absent demand-wise, due to the ongoing uncertain political environment. Turkish producers' offers, which were at $670-675/mt a week ago, had softened to $660-665/mt FOB by early this week, and even price levels below $660/mt FOB were obtained for large volume orders.
 
In the UAE market, SteelOrbis has heard that Turkish producers have booked rebar at $665/mt CFR on theoretical basis. Despite the chaotic situation in the Middle East, Turkish producers are expecting good demand in Saudi Arabia, Kuwait and Yemen, due to recently announced projects.
 
SteelOrbis is preparing for the SteelOrbis 2011 Spring Conference & 64th IREPAS Meeting in Hong Kong this weekend. At the event, which will be attended by long steel producers, traders, raw material suppliers from across the world, all market players will be discussing the expectations for the steel market in the second quarter.