Turkish domestic rebar spot prices rise in local currency after interest rate hike

Today, June 22, Turkish domestic rebar spot prices have mostly risen by TRY 500-600/mt with minor changes on US dollar basis, compared to Monday, June 19, while rebar spot sales have been closed in the Izmir region after the Turkish Central Bank’s interest rate increase from 8.5 percent to 15 percent today and given the ongoing currency fluctuations. Accordingly, 12 mm rebar spot prices in Turkey have settled at TRY 17,700-18,000/mt or $616-626/mt ex-warehouse, depending on the region, with an exchange rate of $1 = TRY 24.35. 

A few Turkish mills including Icdas A.S have closed their rebar sales today. Sources report that one Marmara-based mills has been offering official rebar prices at TRY 18,680/mt ($650/mt), rising by TRY 680/mt ($5/mt) over the same period. 

Bastug Metallurgy has closed its rebar sales until Monday, July 3. In addition, one Iskenderun-based re-roller issued its rebar price at TRY 17,700/mt ($616/mt) ex-warehouse earlier today. 

"Some local traders are aiming to generate cash before the Feast of Sacrifice holiday, so the gap between local traders’ prices has widened depending on their ongoing payments," one source mentioned." Rebar spot prices may exceed TRY 18,000/mt ex-works after the holiday," another source commented. 

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

All prices are ex-warehouse and on actual weight basis. Prices on Turkish lira basis include 18 percent VAT, while prices on US dollar basis exclude VAT. 

$1 = TRY 24.35