Local Turkish rebar spot prices increase in line with exchange rate

Local Turkish rebar spot prices have increased sharply by TRY 34-60/mt as compared to Friday, December 13, due to the Turkish lira depreciating against the US dollar.

Market sources state that demand received by steel mills from traders has weakened today due to the strengthening as of the dollar and the increased domestic rebar prices of Turkish mills. It is observed that Turkish traders are not so eager to buy rebar at the new price levels. Some market sources state that most traders have half-full inventories since they previously concluded rebar purchases while scrap prices were moving up. “Nowadays, local Turkish traders might begin to sell the low-priced products already in their inventories to gain higher profits.” market sources report. In addition, some sources say that a steel mill in Turkey’s Marmara region has sold approximately 7,000-8,000 mt of rebar in total to several buyers, probably with some discounts.

Although mills’ current price levels have failed to gain acceptance from traders for now, market players expect traders to accept them if import scrap prices increase further. Meanwhile, SteelOrbis has been informed that traders are also receiving limited demand from their customers.

Today, December 16, Turkish mill Icdas has increased its 12-32 mm rebar prices by TRY 42/mt to TRY 2,661/mt ($455/mt) ex-works, while Izmir Demir Celik has also raised its 12-32 mm rebar prices by TRY 42/mt to TRY 2,669/mt ($456/mt) ex-works, both excluding VAT. SteelOrbis has continued to hear discounts of TRY 20-40/mt from mills for serious buyers in most regions of the country as they seek to stimulate their sales.

As of today, rebar offers in the Turkish spot market are as follows: 

All prices are ex-warehouse and on actual weight basis and exclude 18 percent VAT. 

$1 = TRY 5.85