Demand in local Turkish rebar market slows amid fluctuating exchange rate

The local Turkish rebar market made a strong start today, November 11, with mills and also traders increasing their domestic offers on dollar basis. As the day comes to its end, the Turkish lira-US dollar exchange rate has indicated a sharp change for the benefit of the lira. This movement is believed to be the result of President Erdogan’s recent pledge to support the new economy minister Lutfi Elvan and the central bank governor Naci Agbal, as well as the relatively positive statements made about Turkey by Michael Carpenter, advisor to US president-elect Joe Biden.

According to market sources surveyed by SteelOrbis, purchases in the local Turkish rebar market are being done strictly in line with buyers’ immediate needs as the recent sharp fluctuations observed in the exchange rate make it harder to foresee the future and make plans.  As of today, 12 mm spot rebar prices in Turkey have settled within the range of TRY 4,480-4,520/mt or $479-483/mt ex-warehouse, depending on the region.

Meanwhile, for the same reasons, Turkish mills have preferred to give offers on dollar basis, or to constantly update their lira prices in line with their dollar prices, in order to prevent unexpected losses.  Icdas’ rebar offers are at TRY 4,550/mt ($486/mt) ex-works at the current exchange rate, while Marmara-based producers’ rebar offers are in the range of $475-486/mt ex-works. In Izmir, IDC have offered at $481/mt ex-works, while another Izmir-based producer’s rebar offers are at $470/mt ex-works today.  In the Karabuk region, Yolbulan A.S. has opened its rebar sales at TRY 4,580/mt ($490/mt) ex-works, while Samsun-based Yesilyurt has offered rebar at TRY 4,570/mt ($488/mt) ex-works.

As of today, rebar offers in the Turkish spot market are as follows:

All prices are ex-warehouse and on actual weight basis. Prices on Turkish lira basis include 18 percent VAT, while prices on US dollar basis exclude VAT. 

$1 = TRY 7.93