Rebar prices in Turkey saw a notable decline in the second half of April, dropping from $570/mt to $537/mt EXW. Despite efforts from major producers like Kardemir to increase prices, the market remained sluggish, reflecting the broader trend of falling scrap costs and weak demand.
Price Trend in Turkey and Key Factors
Between April 11 and 25, rebar offers in Turkey fell by $33 per metric ton, signaling a bearish trend in the market. Producers attempted to push prices higher, but there was limited buyer interest. For instance, Kardemir raised its rebar prices by $7 per ton over March’s levels, but this offer only resulted in the sale of 11,000 tons, demonstrating the lack of demand. One significant factor contributing to this decline is the drop in scrap prices, which reached a three-year low, directly impacting the cost of rebar production.
Impact on Exports and Domestic Market
Turkey’s rebar exports saw a significant increase of 35.7% in January-February 2025, with shipments rising to 768.2 thousand tons. Yemen, in particular, was a major destination, absorbing a large portion of Turkey’s rebar exports. However, in April, there were no deliveries to Yemen, indicating a slowdown in export activities. Furthermore, a reduction in steel production in March, to 3.1 million tons from 3.2 million tons in March 2024, further weakened Turkey’s export prospects. The combination of decreased export demand and internal challenges, such as currency volatility, has created an oversupply in the domestic market, allowing buyers to negotiate more favorable terms.
Rebar Price Movements in Other Markets
Globally, rebar prices showed varying trends. In China, rebar prices held steady at $416/t from April 11 to 20, although there was a $12/t decline since the beginning of the month. Meanwhile, in India, rebar prices surged by $18/t from April 18 to 25, reaching $680/t EXW Mumbai. This increase can be attributed to a favorable outlook for India’s construction market, with investments in commercial and industrial sectors driving demand. However, the housing sector showed signs of strain, with a sharp decline in new housing supply across major metropolitan areas.
In Italy, rebar prices saw a slight decrease of €10/t between April 18 and 25, returning to early-April levels. Additionally, some local producers ceased scrap purchases in late April, indicating a reduction in rebar production.
Conclusion
The Turkish rebar market remains under pressure, with prices continuing to decline in April due to weak demand and declining scrap costs. Although there are positive trends in India’s construction sector and a recovery in other regions like China, the global rebar market faces uncertainties as factors such as export reductions and fluctuating steel production continue to shape price dynamics.
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