The stagnation in exports and the lack of demand in the domestic market jeopardize the sustainability of the sector. Despite the exchange rate decrease and electricity hike, there is no significant impact on prices because demand is still weak. This week, like last week, started slowly and there is no activity in the scrap market.
While Europe has been quiet due to quota limitations, there are expectations of possible activity from Yemen. As of now, however, there is a shortage of cash in the market and money is often held in interest. This makes market conditions more difficult with each passing day.
Low-priced material flows from Izmir to Payas put the producers in the region in a difficult situation. Local producers cannot compete with these prices. The fact that some companies sell at lower prices leads to a serious shortage of demand in the region.
As for rebar exports, prices have increased by USD 5-7/MT after the end of the holiday and the updated offers for July cannot fall below the 585-595 USD/MT FOB range. However, a few deals were confirmed below 580 USD/MT FOB. In the local market, prices have been stable in the range of 595-600 USD/MT EXW while long cargo producers have not yet been able to establish an upward trend.
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