Buying in the Turkish domestic market for longs remains high. Local trading companies continue to replenish rebar inventories actively, while deals for wire rod are closed only for the current needs. However, market players say buying has already reached its peak and demand will start to soften soon, leading to a drop in prices for the material. However, taking advantage of the situation and weaker national currency, producers continue to lift quotations of rebar, having made only small corrections in wire rod prices.
Prices for rebar have risen by $14-22/t (TRY 45-60/t) over the week, including currency fluctuations, to $760-768/t (TRY 1,480-1,495/t) EXW. Prices in lira terms are shown inclusive of 18 % VAT, those in US dollar terms are VAT-exclusive. The exchange rate is $1 = TRY 1.65. At the beginning of the week, some mills quoted the material at least $5/t (TRY 10/t) higher, but by the end of the week they have had to slow down.
On July 13, Turkish steelmaker Kardemir raised prices for July output of rebar by $24/t (TRY 65/t), including currency fluctuations, to $763/t (TRY 1,486/t) EXW, so currently its offers are among the most attractive ones. The company sold 16,000 t of the material and closed sales on the same day.
Price changes in the wire rod segment are attributed mainly to currency changes. However, some suppliers have attempted to raise quotations by $5-21/t at the exchange rate $1 = TRY 1.65 (TRY 10-40/t) over the period under review. Yet, the material has actually added $11/t in the US dollar terms at most. As a result, offers of wire rod are only $10-20/t (TRY 20-40/t) below those of rebar.
As for semis, the general range of prices for square billet remains at $700-705/t EXW, like a week ago. Although this week Kardemir has raised quotations by $15-20/t over two weeks, its prices are still $15-20/t lower than those quoted by other suppliers. Besides, the producer has not closed sales of square billet yet, probably intending to sell large volumes of the material.
( Source: www.metalexpert-group.com )