Domestic rebar prices in Turkey once again impacted by exchange rate

Following the quiet start to the current week, it was seen that domestic rebar prices in Turkey declined slightly yesterday, December 13. However, after the US FED’s decision to increase its interest rates, the Turkish lira has lost strength against the US dollar, causing domestic rebar quotations in Turkey to move up once again today. Compared to the price levels recorded in SteelOrbis’ report published on December 11, domestic rebar prices in Turkey’s Karabuk and Marmara regions have remained stable on Turkish lira basis, while quotations in the Iskenderun and Izmir regions have decreased by TRY 8-9/mt in the same period. Meanwhile, due to currency fluctuations, prices have declined in all regions by $1-4/mt on US dollar basis.

Due to the changes seen in the Turkish lira-US dollar exchange rate, Turkish steel mill Icdas’ 12-32 mm rebar prices in Turkey's Marmara region are now at TRY 2,237/mt ($583/mt) + VAT ex-works, while its rebar prices in Biga, Canakkale in northwestern Turkey are at TRY 2,212/mt ($576/mt) + VAT ex-works. The mill’s list prices have moved up by TRY 34/mt + VAT as compared to its previous price list issued on December 7, while due to currency fluctuations prices have increased by $12/mt on US dollar basis.

It is believed that the weakness of demand in local Turkish rebar market may give way to a slight revival following the abovementioned developments, though demand is not expected to reach lively levels since buyers are unwilling to increase their inventory levels due to the approach of the end of the year.

As of today, December 14, traders’ rebar offers in the Turkish domestic market are as follows:

All prices are ex-warehouse and on actual weight basis and exclude VAT.

$1 = TRY 3.84