Decreasing demand in Türkiye's rebar market adds to price pressure

In the last week of October, Türkiye's rebar market continues to be under price pressure due to decreasing demand and increasing costs. After the price increases at the beginning of the month, the activity in the market ground to a halt. Especially the failure to meet expectations from China did not lead to the expected revival. The recent decrease in scrap deals also contributes to the belief that the slight increase in rebar prices cannot be sustained.

Domestic steel producers are facing challenges due to increasing costs and decreasing demand both at local and abroad. Local rebar prices are generally hovering around USD 610-640/ton EXW, with regional variations. In Izmir, prices are set at 610-615 USD/ton, while prices in the Marmara Region are set at 640 USD/ton. Icdas has kept its rebar price unchanged at USD 630/mt, while buyers can buy at USD 620/mt.

According to SteelRadar data, rebar prices in Istanbul have decreased to 25,800 TL, while no changes have been observed in Izmir and Karabük, which remain at 25,300 TL and 25,800 TL, respectively. In Payas, however, prices have increased to 26,100 TL.

The export market remains sluggish and new orders are cautious. “I do not expect a rebound in exports, but I think European cargoes will be sold in November,” a market source said, while demand in foreign markets remained weak. Rebar export prices from Türkiye are trading around USD600-610/ton on FOB basis.

Overall market activity has been slowing down amid weak domestic and international demand. Market players are experiencing uncertainty due to global economic uncertainties. If unfavorable conditions persist, rebar prices may experience new fluctuations. Producers are expected to continue to optimize their costs and search for new markets.

Türkiye spot rebar prices by region, as assessed by www.steelradar.com on October 30, 2024;

Istanbul rebar prices 25.800 TL (-200) $625
Izmir rebar prices 25.300 TL (-100) $615
Karabuk rebar prices 25.800 TL (+100) $627
Payas rebar prices 26.100TL (+200) $634

1 USD = 34,29 TL