Posted on 08 Apr 2020
Turkish mills are heard to have increased their rebar quotes significantly in both the domestic and export markets, following the sharp increases seen in scrap prices.
Increasing scrap prices and the depreciation of the lira are driving the rebar market in Turkey. Rebar demand and prices have increased as a result of these two factors, with prices also supported by tightening supply due to mill closures.
Domestic rebar prices, which stood at TRY 2,960-3,020/tonne only a few days ago, now stand at TRY 3,140-3,200/t ex-works, including VAT, depending on the region. With the lira at 6.76 per dollar on Tuesday, these prices translate to $393-401/t ex-works, excluding VAT, up from $376-384/t on 2 April.
Although the market is registering increased Turkish rebar demand, it is not expected to last long. Once immediate demand requirements are met and Ramadan begins on 23 April, demand is expected to slow again. If anti-coronavirus measures are tightened, demand may slow even earlier, Kallanish notes.
Export demand has also increased slightly as a result of the sharp increases seen in Turkish scrap prices. Although less strong compared to the domestic market, export demand is seen to have improved in Yemen, Africa and the EU.
Turkish mills’ rebar quotes, which stood at $380-390/t fob on 2 April, have risen to $410-415/t fob actual weight. Some producers refrained from declaring prices on Tuesday as they were waiting to see at what price scrap settles.
Source:Kallanish
