ICDAS (Biga) prices followed in the first quarter
ICDAS entered 2023 with an iron price of $710 announced on January 2nd. On January 5, it increased its rebar price to $730 in parallel with the rising scrap prices due to the acceleration of scrap purchases. With the demand instability in the market, iron prices were announced as $710 on January 23, $720 on January 30, and $710 on February 15.
ICDAS closed its rebar prices for sale after the statements of the company officials who made statements with the government in the week of 17-27 February that they would not allow the prices to be increased. On February 27, it was heard from traders in the local market that İçdaş announced a price of $750. This information was rejected by ICDAS and it was confirmed that it did not give any price. While the Iskenderun factories were trying to survive the earthquake between February 17 and March 6, for which ICDAS did not give a price, Izmir and Istanbul factories gradually increased their rebar prices and realized high tonnage sales.
The selling prices of the factories increased from $710 (early February) to $780 (end of February) in about a month. It fell to $750 in the first week of March.
ICDAS announced its official prices as $750 on March 6, 2023. With the continued lack of demand in the market, prices dropped to $740 on March 27.
On March 28, 2023, it was reported to SteelRadar by market representatives that some factories collected demand and sold at $715. While this price caused panic among other producers, the same factory increased its prices back to $730 today.
While rebar prices in the local market witnessed a large rise after the earthquake, they fell again in the spot market due to weak demand.
Spot prices in the Turkish domestic rebar market were announced on January 2, 2023 in the range of $695-700. The positive progress of the expectations soon increased the price level to $ 710-720 on January 11th. However, this leap did not last long. On January 20, 2023, prices reached $685-695 again. Prices were heard at the level of $710-720 on February 8 in the hazy markets, as the Turkey earthquake stifled the region and the country in general.
There is sufficient production and stock in the domestic market for earthquake zone restoration
On February 15, 2023, prices were offered to buyers at $705 in the spot spot in the Turkish domestic market. Due to the statements that the cities affected by the earthquake will be rebuilt in 3-4 months and that this iron will be met from the domestic market, sales and prices of rebar in Turkey have increased day by day. It reached its 2023 peak with prices of $765-790 on February 27. Due to the failure to start the expected construction works on March 7, 2023, uncertainty, weak demand and market conditions, it fell to the level of $ 750-760. Today, Turkish rebar prices are offered for sale in the spot market at $710-720 on March 28.
The reasons for the decline in rebar, which saw the peak in price, varied
The fact that the construction works did not start in the earthquake zone in Turkey, the factories slowed down their scrap purchases, could not meet the expectations of the summit in the global markets. Despite the favorable list prices of the factories in the Turkish domestic market, the expected demand from the merchant sector did not accumulate. Although the sales are active, the fact that the iron does not enter the soil pushes the supply-demand to the power game between the producer and the trader. It will take time to meet the needs arising from the damage caused by the earthquakes affecting our 10 provinces centered in Kahramanmaraş. As the election period approaches, the steps in the investments to be made have been slowed down.
Futures exchanges also fell
Turkish rebar prices decreased in LME (London Metal Exchange), one of the futures exchanges. According to the latest data announced yesterday;
Turkey 1-Month Futures – FOB $724 with -1.00 (-0.14%) depreciation
Turkey 2-Month Futures – FOB $686 with -12.50 (-1.82%) depreciation
Turkey 3-Month Futures – FOB -3.50 (-0.51%) depreciated and took its place in global stock markets as $ 688.50.
Although it was seen that commodities gained strength as the bankruptcies of banks were announced one after another in the global markets, the banks' curtailing of the credit taps disrupted the rotating trade.
In short, the indecisive wait continues in the Turkish steel markets. Seeing the bottom of the prices, the acceleration of the investments may raise the market again. On the other hand, uncertainties may persist until the end of the Turkish election period.
Comments
No comment yet.