Turkish domestic rebar prices pushed up by production costs and exchange rate

Turkish steel mills have increased their domestic rebar offers over the past week, with the movement of the Turkish lira-US dollar exchange rate contributing to the rises recorded in the local Turkish rebar market.

Having increased their domestic rebar quotations on Monday, March 4, due to the depreciation of the Turkish lira against the US dollar, Turkish rebar producers reduced their domestic rebar offers in the following days as the lira regained some of its strength. However, the Turkish lira fell sharply yesterday, March 6, to TRY 5.44 to the dollar, causing Turkish mills to once again increase their domestic rebar quotations, to TRY 3,150-3,180/mt ex-works, including 18 percent VAT.

On the other hand, the ongoing uptrend of scrap prices in Turkey has increased Turkish mills’ production costs, supporting the upward movement of the local finished steel market. Market sources state that demand in the local Turkish rebar market is at low levels but they expect a slight demand revival in coastal areas with the approaching spring.

Meanwhile, Turkish steel producer Icdas has revised its domestic rebar prices today, March 7, increasing them by TRY 20/mt +VAT to TRY 2,690/mt ($494/mt) ex-works, excluding VAT. In the meantime, Izmir Demir Celik has revised it rebar prices to TRY 2,712/mt ($498/mt) ex-works, excluding VAT.

As of today, March 7, 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 5.45