Local Turkish rebar prices increase significantly amid cost pressure

Turkish rebar mills have proceeded to increase their rebar prices in line with higher import scrap prices in the last few deals as well as costlier energy prices after Iran stopped supply of natural gas to Turkey, and also given the impact of the war in the Middle East. Most local buyers are concerned about how long the rebar price increase trend will continue and are cautious regarding piling up stocks as the month is about to end, given VAT issues.

Official rebar offers and workable prices for cash payment in the Marmara and Izmir regions, including İçdaş' prices, have settled at $590-610/mt ex-works and $585-605/mt ex-works, respectively, as compared to March 23. These prices indicate an increase of $10-20/mt over the same period. One Izmir-based mill opened its rebar sales at TRY 31,400/mt ($590/mt) ex-works today, with an increase of TRY 600/mt ($11/mt) over the same period. 

One of the Iskenderun region-based mills has set its official rebar price today at TRY 30,900/mt ($580/mt) ex-works, also up by TRY 400/mt ($7/mt) compared to March 23. Sources report that several Iskenderun-based rolling mills are offering rebar today to serious buyers at TRY 30,600-30,800/mt ($575-578/mt) ex-warehouse, up by TRY 300-400/mt ($6-7/mt) over the same period.

Domestic mills’ higher rebar prices have triggered another increase in the spot market by TRY 300-800/mt ($5-15/mt). Currently, local 12 mm rebar prices in the spot market are in the range of TRY 30,800-31,800/mt ($578-597/mt) ex-warehouse, depending on the region.

All prices are ex-warehouse and on actual weight basis. Prices in Turkish liras include 20 percent VAT, while prices in US dollars exclude VAT.

$1 = TRY 44.38