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Iraqi customers refuse to buy rebar at current prices - 24 May 11

Iraqi market for longs is seeing moderate demand from end-users, resulting in higher rebar prices. So, stockists have raised quotations by $10-25/t in two weeks amid growing import prices ($15/t up over the same period). Nevertheless, traders are uninterested in new purchases now, as they have replenished rebar stocks before and are wary that quotations are at the peak now. However, amid an expected upturn in construction activity, local buyers can accept new offers from foreign suppliers, but they will keep following the uptrend.
As a result, import rebar of June rolling is offered to Iraq at $800-810/t CPT Baghdad. The material can be booked by $10-15/t lower in the secondary market, though stockists sign no contracts as they accept the levels by at least $25/t lower than current foreign suppliers’ offers. However, Ukraine’s ArcelorMittal Kryvyi Rih does not plan to give up thanks to more active sales in other markets, while Turkish suppliers'' positions are rather shaky now since demand in the domestic market, which mostly supported export price growth, has started getting weaker.
At the same time, local steelmakers have decided to push quotations up by $20/t. However, their material is much cheaper than import products (by $55-65/t), and thus they still see good demand.
( Source: www.metalexpert-group.com )
May 24, 2011 08:06
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