Turkish long product markets

This week, worries dominated Turkish local rebar market. Local trading firms have started to reduce their inventories considering that the prices have now hit the top. Although the producers' list prices for 12 mm rebar were not below TRY 800/ton ($502/ton), there were sales concluded at around TRY 760/ton ($483-489/ton+VAT), including VAT, especially in the Southern district. Price level of 12 mm rebar was at around TRY 770-780/ton ($483-489/ton+VAT) in overall Turkey. Certain trading firms in the local market consider this softening as a correction instead of a decline as it narrowed the gap between both local and export prices. The gap between local and export prices was around $40/mt, 2-3 weeks ago. Sales concluded by Turkish producers this week at $490/ton FOB to Middle East and Portugal and also the purchases concluded in the UAE at $500-510/ton CFR price range on theoretical weight basis approached Turkish export and local prices again. If the Turkish rebar exports continue strongly, local rebar market may rally again. Turkish local merchant bar market remained almost unchanged compared to the previous week. Local angle prices are at $505-530/ton, excluding VAT while flat bar is at $520-540/ton. There is not much activity in the market this week. Merchant bar producers, who had difficulty in exports in the last 2-3 weeks, may again come active in Europe, with the projected Euro 10-15/ton increase in European prices this week and the expectation that the prices will increase further in the coming days. Merchant bar producers in Turkey started to take orders for June shipments. Reports coming in confirming rebar purchases of the UAE and rebar sales concluded at $490/ton FOB Turkey level eased off to some extent, the anxiety overwhelming the market early in the week. However, certain local traders who believe prices can not be maintained at these level for so long still keep on reducing their inventories.