Turkish rebar prices dropped further today on very weak domestic demand and as export buyers continued to hold back. The Turkish central bank's decision to raise its benchmark interest rates by 3.5 percentage points to 46pc underlines the weak outlook for construction investment in Turkey, while overnight lending rates went up to 49pc, adding to the squeeze on liquidity.

Argus' daily Turkish domestic rebar assessment fell by $7.50/t to $542.50/t ex-works including value-added tax (VAT), based on today's offers, with the lira equivalent falling by TL350/t to TL24,850/t ex-works including VAT.

The daily fob Turkey assessment fell by $10/t to $550/t fob, as lower offers emerged and bids remained largely absent.

In the domestic rebar market, a major Izmir mill and two Iskenderun mills were willing to sell for $540/t ex-works today, down from $545-550/t ex-works earlier this week. Two Marmara mills offered $560/t ex-works but were expected to accept bids around $550/t ex-works if there were any.

In the export market, an Izmir mill offered 2,000-3,000t cargoes for $555/t fob to traders, who were unable to find any bids near that level from east African or non-EU Balkan buyers. Two Marmara mills offered rebar at $560/t fob, with wire rod offered at $570/t fob, but they noted that there were no bids in the market. Despite a now very strong euro against the US dollar favouring EU-based importers, mill sources expressed little hope that EU buyers will return earlier than usual for third-quarter clearance material, given the overall weakness in global and Turkish steel sentiment.

Argus' weekly fob Turkey wire rod assessment fell by $10/t to $562.50/t fob.