Turkish longs and square billet exporters keep raising their quotations in view of domestic demand rather than because of a slight rise in scrap quotations. Besides, suppliers expect foreign buyers to become active soon, in the Middle East in particular, as stocks of the material are moderate there or even low. Nevertheless, Middle Eastern buyers remain in wait-and-see mode amid unfavourable political situation in the region. As a result, export prices for finished longs are about $10/t below domestic offers, and those for square billet are on the same level, because exporters hope for better sales in this segment. So, some suppliers still search for alternative target markets, while the others have decided to delay sales until May in the rising market.
Turkish exporters have pushed through an increase in prices for rebar by $20/t w-o-w in several stages, lifting them to $680-690/t FOB for June production from $670/t FOB early in the week.
Specifically, Emirati buyers refrain from new purchases, because their stocks are high enough. Besides, local producers have set more attractive quotations, thus forcing foreign suppliers from the market. Saudi buyers are also more interested in domestic market in view of its prices. They regularly restock on local rebar amid strong demand from end-users. Rebellions continue in some countries of the Middle East and North Africa, and so buyers show zero demand for finished products there at the moment. Only Iraq stands as an exception now. The country steadily imports Turkish steel products.
Turkish suppliers still try to take back the US market, even though demand for rebar is slack there. However, US buyers prefer to delay purchases of import material, because they expect a fall in domestic prices. Demand from South and Central America has not surged, contrary to expectations. Moreover, weather conditions are adverse in these regions and thus the situation there is unlikely to improve so far.
At the same time, Turkish exporters have started offering July production of mesh-quality wire-rod. They have lifted prices for it by $20/t, so its quotations are still higher (by $30/t) than those of rebar.
Only Saudi and Emirati buyers show demand for square billet in foreign markets, as their stocks have substantially decreased. CIS material is offered to Turkey at $635-645/t C&F, a mere $5/t below domestic offers, and so it is still unattractive to local buyers.
( Source: www.metalexpert-group.com )