Import scrap quotations and exchange rate push up local Turkish rebar prices

Having moved down as of the third week of September and caused buyers in the local Turkish rebar market to maintain a wait-and-see stance as regards new deals due to their expectations of a further decline in finished steel prices, import scrap quotations started to increase as of the middle of last week. In the import scrap transactions heard in Turkey at the weekend and today (Oct. 9), prices have continued their upward movement. Meanwhile, the Turkish lira has sharply depreciated against the US dollar against the backdrop of the developments in Northern Iraq and also due to Turkey and the US mutually suspending visa services.

As a result, domestic rebar prices in Turkey have increased by TRY 100-130/mt since SteelOrbis’ report on October 5. Having closed their rebar sales following the rises seen in import scrap prices last week, Turkish steel mills have increased their domestic rebar prices today as expected. Additionally, Turkish steel producer Kardemir has closed its domestic rebar sales after selling about 36,500 mt in total as buyers’ rebar purchases have accelerated due to their concerns that domestic rebar quotations could rise further. The mill had opened its rebar sales on September 19 at the level of TRY 1,924/mt ($521/mt) ex-works, excluding VAT. Although domestic rebar purchases in Turkey have accelerated, market sources report that the mood in the local Turkish rebar market remains cautious.

As of today, October 9, 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 3.72