The recent difficulties in the Turkish rebar market are being closely monitored by industry players. A significant decrease in exports and the continued regional gap in the domestic market have led to a tightening of the market. This situation makes it difficult to access materials and finished products, and no movement is expected in the sector as a whole.
High Interest Rates and Export Problems
High interest rates and insufficient exports are among the main factors preventing the market from moving. Since there is no expectation of a rise, no one is buying rebar in stock. The high cost of loans and the lack of expectations for a rise in rebar prices lead investors to wait. This leads to reduced liquidity and market tightness.
European Market Prospects and Scrap Prices
Although activity is expected in Europe this week, buyers are not willing to pay high prices for scrap offers. Scrap offers above $380 are hard to find buyers for. This reflects the general stagnation in the market. Iron ore prices, on the other hand, surged last week on news of China's stimulus package. As iron ore remains strong, scrap prices are likely to remain strong as well. However, this is not enough to prevent weak sales of finished products.
IDIS Issues and Factory Performances
The problems experienced at IDIS have been solved to a large extent compared to the factories. However, declaring traders continue to experience these problems. This has a negative impact on the supply chain in certain segments of the market and reduces the overall market performance.
Spot rebar prices by region as assessed by www.steelradar.com on May 20, 2024;
Istanbul rebar prices at 23,100 TL (-200)
Izmir rebar prices 22.700 TL (0,00)
Karabuk rebar prices 23,100 TL (-100)
Payas rebar prices 23,700 (0.00)
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