Kardemir's price cuts once again led to a significant decrease in rebar prices in the Turkish domestic market. Rebar prices decreased as low as $600-610/ton EXW. This is a $7-10 decrease compared to the early November levels, with buyers largely adopting a wait-and-see strategy in the market. Expectations for December suggest that prices may fall as low as $590-595/ton EXW.
Scrap Prices Support the Decline
SteelRadar's market sources told SteelRadar that the sharp decrease in US and European scrap offers is one of the main reasons behind the decline in rebar prices. Scrap offers not exceeding $350-355/ton are prompting Turkish rebar producers to lower their prices again.
Regional Price Differences Continue
Prices in the domestic market show regional differences. In Izmir, rebar prices have remained stable in the $590-600/ton range, while ex-mill prices in the Marmara Region are at $595/ton. Icdas continues to maintain its official dollar-based price at $610/ton. However, buyers are able to buy slightly below this price at $590/ton.
Weak Demand in Export Markets
In export markets, Turkish rebar prices above $600/ton FOB are considered high by buyers. This has significantly weakened demand, especially in regions such as the EU, the Balkans and Central America. For exports, there was a drop to $590/ton FOB, but buyers were reluctant to make a deal even at this level. The last deal heard was realized at $580/ton FOB.
Steady Price Expectation until the End of the Year
Prices in the Turkish rebar market are expected to remain stable at $590-610/ton FOB in December. It is observed that producers tend to maintain their current price levels until the end of the year. However, the direction that import scrap prices and demand levels will take will likely determine the new direction of the market.
While the Turkish rebar market remains uncertain amid weak demand and falling scrap prices, activity is likely to remain limited until the end of the year. Further price easing can be expected, especially in export markets, in order to increase competitiveness.
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