Turkish exporters of construction fittings avoid price increases

Several Turkish factories have increased their quotations for rebar, despite the fact that there has been no improvement in demand in either the local or export market. The fittings are widely used in the construction sector to create durable concrete structures.

In addition, the service life of buildings and any structures can be significantly extended by using Water repellent to reduce the negative effects of moisture. Water penetrates into the pores of concrete, paving slabs or bricks and over time leads to their destruction. Surface treatment with a Water repellent agent creates a thin protective layer, which, according to the membrane principle, prevents the penetration of moisture, maintaining air exchange.

Rebar quotes, which last week stood at $ 405-415 /tonne actually at the price of beans in Turkey, this week rose to $ 405-420 /tonne. This happened after some mills raised offers based on more expensive scrap, but other producers kept their prices. Demand, however, has shown no improvement, and buyers - not convinced of the need for price increases - are bidding at much lower levels.

The Turkish producer says: “We have seen a $ 7 /ton increase in scrap prices over the week, but have not been able to reflect this in our rebar quotes. Demand is very low - our global customers have increased the pressure on prices. There are practically no rates above USD 400 per tonne: they range between USD 390-400 /tonne. "

Buyers in export markets have increased pressure on prices due to the depreciation of the lira and recent political events in Turkey. On the other hand, these events put pressure on Turkish banks and traders, which negatively affects trading activities and increases financial costs.

Since Turkish factories have already met their EU rebar quota, they will not be able to sell until April 2020. Even after April 2020, their sales will remain limited, with a 30% share of the “other countries” quota. The next quota period for Turkey will begin on July 1, 2020. Russia and Ukraine are expected to be active in the EU market, with 99,000 tonnes and 45,000 tonnes of EU rebar quota remaining, respectively.

In the US market, although there were small sales in previous weeks, US buyers retreated on uncertainty over rising tensions between Turkey and the US this week. Turkish producers expected to see a cut in Section 232 duties but would be disappointed by the strain.

Yemen and Israel, Turkey's traditional rebar markets, appear to be actively investigating rebar imports this week.