FOCUS: Long steel markets worst-hit by Turkey lira crisis

The crisis between the United States and Turkey has had its most marked effects on the long steel market in the Middle Eastern country, where deals are made in Turkish lira.

The consequences for the country’s domestic flat steel markets were less harsh because both raw material purchases and finished flat steel sales are denominated in dollars, sources said on Wednesday August 15. The recent sharp depreciation in the exchange-rate value of the lira came following political tensions that arose between the US and Turkey, allies in the North Atlantic Treaty Organization (Nato), over Turkey’s detention of a US evangelical pastor for alleged links to proscribed political groups. This has compounded the continuing economic instability in the region. The lira reached a record low (at the time) against the dollar on August 6, after the administration of US President Donald Trump said that it intended to review Turkey’s duty-free access to the US market. The lira was trading at TRY100 to $19.64 on August 6 this year, compared with TRY100 to $21.58 on July 6, and TRY100 to $28.33 on August 6, 2017, according...

Published

Cem Turken

Serife Durmus

August 15, 2018

23:20 GMT

Mugla