Turkish rebar market becomes quieter ahead of general election

In this week's Turkish domestic rebar market, the steel price hikes seen in recent weeks have stalled. Rebar demand in the country has slowed down to some extent ahead of the June 12 general election. Although producers' prices have remained stable so far, traders' prices have shown some softening.
 
Early last week, rebar prices in Turkey's Marmara region had been announced at TRY 1,237/mt + VAT on actual weight basis. In addition, on May 31, Turkish mill Kardemir opened its 12-22 mm rebar sales at TRY 1,259 + VAT ex-works. After these price announcements, traders' rebar prices had climbed up to TRY 1,246-1,280/mt + VAT ex-warehouse, on actual weight basis.
 
This week, as buyers showed resistance to the above price levels, traders' rebar prices first regressed to TRY 1,220-1,258/mt + VAT ex-warehouse, and towards the end of the week their prices dropped down to TRY 1,195-1,254/mt ex-warehouse.
 
Turkish rolling mills' rebar export offers, which were at $715-725/mt FOB early last week, had increased by about $30/mt in line with price hikes seen in the domestic market to $745-755/mt FOB.  For shipments in June, Turkish mills' rebar offers still stand in this price range coming towards the end of the current week.
 
Due to the sluggishness seen in Turkey's export markets and the uncertainty in the domestic market ahead of the general election, different offer levels are seen. However, by next week prices are expected to become clearer. Besides, since with Ramadan gradually approaching buyers in the Middle East and North Africa are reluctant to conclude bookings at these levels (though focused just on meeting their urgent needs), it is thought that Turkish mills will probably soften their export offers. While market players state that they are not expecting a steep decline in rebar export offers, these offers may see some downward correction in the coming period.