Reduced availability in Turkish rebar market strengthens prices

Tuesday, 03 July 2012 17:40:43 (GMT+3)   |  
       

In the Turkish rebar market, the spot price range has become increasingly wide. Accordingly, traders' 12 mm rebar prices in the Turkish local market are currently standing at TRY 1,106-1,170/mt + VAT ex-warehouse, depending on the region, while the upper end of this price range comes from the Marmara region. Given these prices are at about $614-620/mt + VAT ex-warehouse on US dollar basis, it is obvious that local rebar prices in Turkey are now far above rebar export offers at $610-620/mt FOB.
 
The gap between domestic market prices and export prices has resulted from producers' output cuts due to unfavorable market conditions. Besides, this move by producers has also succeeded in stopping prices from softening further and has even pushed them up.
 
Particularly in the Marmara region, supply shortages for certain sizes have caused rebar prices in this region to reach even higher levels and reduced availability has provided support for prices to maintain their firmness. However, the widened rebar price range in the Turkish domestic market prevents the market from achieving a balanced structure and it is becoming more difficult for market players to predict future price trends.

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