Local rebar spot prices in Turkey down $4-5/mt

Turkish domestic rebar spot prices in the national currency have moved up by TRY 10-20/mt today, February 28, due to the weaker lira; however, the amount of the increase has not been enough to fully offset the depreciation of the lira. As a result, traders’ offers on dollar basis have moved down by $4-5/mt, which is considered to reflect the weaker market in Turkey.

Sources report that some traders are trying to generate sales for destocking and support their cash flow by giving discounts to buyers. Only in the Karabuk region have prices moved sideways, due to sluggish demand. In the Izmir and Iskenderun regions, traders have started to offer at least TRY 10/mt lower than market prices, SteelOrbis understands.

In the producers’ segment, Icdas and Izmir Demir Celik (IDC) have increased their rebar offers today by TRY 50/mt to TRY 3,300/mt ex-works, keeping the US dollar equivalent relatively stable at $448/mt ex-works. According to some sources, a few mills in the Marmara region prefer to sell rebar in US dollars for now at a fixed level of $445/mt ex-works.

The local rebar market sentiment is mainly negative as there are concerns about the developments in Syria impacting local demand. In addition, the mood has started to weaken in the import scrap sector.

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 6.24