The upward trend in the domestic rebar market, which started last week, continues in the last week of September. The rebound in buying activity in particular is cited as one of the main reasons for the price increase. There are regional price differences in the market, with rebar prices in Izmir reaching $595/mt. In the Marmara Region, prices have reached $620/mt ex-mill. Although İçdaş has increased its official price to $620/mt, buyers are reportedly purchasing material at $610/mt.
A source told SteelRadar, pointing to the reasons behind the increase in the region, saying: “This was triggered by a few mills not having material on hand, mills turning to exports and a shortage of material in Habaş. The interesting thing is that although many factories are producing, there is a shortage of material. The fact that some factories in this region are focusing on exports also affected prices. However, I don't think this increase will be long-term; there will be a return at some point.”
Another source stated that demand showed a short-term increase and expressed his predictions for future price movements as follows: “We have seen an increase in demand for the last two weeks, but there was no demand today. I think prices may rise again after the interest rate cut and demand may revive, which will probably happen around February 2025. The bottom has already been seen in rebar prices. On the export side, there has been a movement in other steel products rather than rebar. Since the costs of factories are high, I do not expect a major drop in prices; they will continue to be shaped according to foreign and domestic market demand.”
Another source said that there have been small movements in the ore market, adding that fluctuations in the market will continue until the interest rate cut comes and production increases: “At the moment, the market is active due to low capacity, but problems will continue without an interest rate cut.”
Price increases are also noteworthy on the export side. Rebar export offers from Türkiye have risen to $590-595/mt FOB for October shipments. Higher production costs are cited as one of the main reasons for this price increase.
Although market experts expect prices to stabilize at a certain level in the short term, developments in both local and export markets are likely to continue to influence prices.
Spot rebar prices by region, as assessed by www.steelradar.com on September 24, 2024;
Istanbul rebar prices 25,150 TL (0.00) 614$
Izmir rebar prices 24.600 TL (0,00) 600$
Karabuk rebar prices 25.100 TL (+200) 612$
Payas rebar prices 25,400 (+100) 620$
1USD = 34,16 TL
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