Turkish longs exporters have managed to push through an increase, citing higher scrap prices, as well as recovered buying activity in the domestic market and abroad. In particular, demand for rebar has somewhat improved after being down for a long time, whereas sales of wire rod have been high previously too. As a result, some exporters have decided not to sell the material and work out a new pricing strategy in view of the rapid changes in the market.
Thus, the latest export offers of Turkish rebar have come at $715-720/t FOB (+$5-10/t in a week), while deals have been closed at $700-715/t FOB over the period under review. Sellers consider setting prices at $735-740/t FOB; yet customers are sceptical about the increase.
Market players report increased sales to Egypt, where supply is limited because of production problems. Metal Expert learns contracts have been signed at $715-720/t C&F before the last increase. Far Eastern customers, those from the UAE in particular, are refraining from purchases, having filled their stocks just recently. The situation is still tense in Yemen, where buyers have quit purchases as hostilities started in the country. Nevertheless, some sellers hope to ship small lots to Lebanon and Iraq, construction companies’ demand staying moderate there (though Iraqi traders refused to accept even previous levels). Customers in Saudi Arabia and Iran still prefer domestic material, prices for which are acceptable to them.
Suppliers have also failed to sell Turkish rebar to the USA, where domestic transaction prices are equal to import quotations – $729-756/t EXW and $730-740/t C&F respectively. Moreover, decreased demand and a lack of new large-scale construction projects mean this destination will hardly be profitable in the near future either.
Sales in the segment for mesh-quality wire rod remain high, which has enabled some suppliers to push quotations up by $20/t. Besides, taking into account higher domestic offers in Turkey, export prices for the material are likely to rise further. Steel traders say most of wire rod is being sold to Africa (Senegal, Cameroon and Tunisia) and to South America (Peru, Brazil). Thus, buyers from the USA, whose products are now $35-40/t cheaper, need less import material now. However, Turkish sellers will hardly lose this outlet as consumption of steel products is still strong in the country and sales to the USA have been the highest in the past few months. Specifically, Habas is offering the material on average at $750/t FOB. Whereas early in the week wire rod from Diler Holding was available at $735/t FOB, a few days later the supplier decided to delay sales, steel traders report.
At the same time, billet of June production, which remains unattractive to foreign customers due to high price for it, is still sold mostly domestically. However, considering that June output of CIS semis, which were available at more attractive prices, has been already sold out, some buyers in North Africa and the Middle East may start purchasing Turkish billet.
( source: www.metalexpert-group.com )