Turkey’s construction sector demands examination of steel price increase
Still having not fully recovered from pandemic challenges, the construction industry of Turkey faced another issue – the galloping increase in input prices, including those for steel components. The representatives of construction contractors voiced their concerns, asking for governmental support and intervention.
Turkey’s construction sector urged the government to find a solution, stressing the sharp rise in the cost of construction materials in the country can damage the sector. As construction is among the main steel consuming areas in Turkey, particular concerns are about price development in local longs.
In particular, those for domestic rebar skyrocketed to $ 735-765 / t EXW at the start of the fourth week of May, adding 20.5% in a month and 84% on an annualized basis.
“The exorbitant price increases in iron and steel products and other basic construction materials cannot be explained by economic evaluations that include exchange rate increase, inflation and interest parameters. Extraordinary increases in iron, cement and concrete prices should be examined by the Competition Board, ”stressed Tahir Tellioglu, the president of Turkey’s Confederation of Construction Contractors IMKON.
Construction sector representatives argue that the current market conditions are putting strong pressure on construction companies, and many projects could be stalled is the situation remains like this.
Turkish long steel market players believe it is too early to talk about any outcome. “The government is unlikely to consider this issue, and it will not change the rebar price in Turkey even though the situation in the construction sector really requires intervention. The only thing that can affect the tags is the situation in China, raw material prices and demand.