Steel producers in Türkiye are facing difficult times due to the slowdown in rebar demand from domestic and foreign customers. Despite high production costs, the stagnation in the market is forcing producers to cut prices. This is leading to increased uncertainty in the sector.
Local rebar prices decreased by $5/t to $580-610/t EXW during the week, although prices varied across regions. In the Izmir region, rebar prices are $590/mt, while in the Marmara region they are $600/mt ex-mill. Icdas has kept its official dollar rebar price unchanged at $610/mt, while buyers are able to buy at $600/mt.
Weak buying interest from foreign customers continues to weigh on export rebar offers from Türkiye. Offers for August shipments were in the range of $575-585/t FOB, down from $575-590/t FOB a week ago.
Insufficient demand and a shortage of cash in Türkiye are the main reasons for the continued decline in prices. Tougher economic conditions, inadequate financing sources and high interest rates are causing business to stagnate in the steel industry. Against this backdrop of uncertainty, industry players find it difficult to predict the future.
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