FOCUS: Istanbul election re-run weakens lira further, hitting long steel market hard

The long steel markets in Turkey have been more seriously affected by the consequences of the recent country-wide mayoral elections than the flat steel markets, because of the increased weakness of the country’s lira.

The decline in the exchange-rate value of the Turkish lira hurts the long steel market because that is the currency used for trading in such commodities. The flat steel market, meanwhile, conducts its trades in US dollars. The mayoral elections were held on March 31, with some unexpected results. The ruling Justice & Development Party (AKP) won the majority of votes for mayors across the country, but lost out in the key cities of Ankara, Istanbul, Adana and Antalya, where the opposition Republican People’s Party (CHP) triumphed. After a dispute, members of the country’s Supreme Election Council (YSK) accepted the objection put forward by the AKP to the Istanbul poll, and scrapped that result on May 6. The Istanbul election will now be re-run on June 23. But the news of this re-run led to the lira losing more ground against the dollar, because of international fears about the rule of...

Published

Cem Turken

Serife Durmus

May 14, 2019

15:50 GMT

Bursa, Mugla