Local Turkish rebar prices soften with support provided by exchange rate

Demand in the local Turkish rebar market has made a quiet start to the current week. While it has accelerated during the Turkish mill Kardemir’s rebar sales which were opened on Tuesday, October 16, it has once again weakened after Kardemir closed its sales. Kardemir closed its billet sales on the same day, after selling about 65,500 mt in total. The mill had opened its sales at the level of TRY TRY 2,650/mt ($457/mt) ex-works for S235JR billet and at TRY 2,680/mt ($462mt) ex-works for MT III-A billet, both excluding VAT.

Another major Turkish producer, Içdas has revised its domestic rebar prices twice this week by announcing the first reduction on October 16 and the second today. Icdas’ 12-32 mm rebar prices in Turkey's Marmara region are now at TRY 2.809/mt ($506/mt) + VAT ex-works, while its rebar prices in Biga, Canakkale in northwestern Turkey are at TRY 2,775/mt ($500/mt) + VAT ex-works.

Market sources state that domestic rebar prices in Turkey have started to follow a downtrend with the Turkish lira compensating for some of its losses against the US dollar. Turkish rebar mills’ price revisions have also provided a certain support to this new trend. However, there are worries about the economic outlook in Turkey despite the appreciation of the Turkish lira against the US dollar, and so buyers in the local Turkish rebar market are maintaining a wait-and-see stance.

As of today, October 18, 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 5.55

$1 = TRY 5.80 (October 16)