Demand for rebar has improved in Iraq, though not as significantly as market participants expected during Ramadan. However, despite still unstable military and political situation in the country, residential construction and civil engineering is gathering pace, so local customers, who need to replenish their stocks, are considering making deals for import products.
Thus, offer prices for rebar from ArcelorMittal Kryvyi Rih, which rose by $15-20/t in early September, remain unchanged for now at $840-850/t CPT Baghdad ($760-770/t C&F Tartus), but no contracts at the new levels have been reported. Notably, last purchases of large lots of Ukrainian material (over 20,000 t) were made two weeks ago at $825-830/t CPT Baghdad ($745-750/t C&F Tartus).
Offer prices for Turkish rebar have not changed over the same period either – $850-865/t CPT Baghdad ($800-810/t DAP Zakho), which is $10-15/t higher than quotations for Ukrainian products. Market players say Iskenderun’s plants have sold some 15,000 t of the material to Iraq at the bottom end of the price range since the beginning of the month.
Amid favourable market situation, stockists’ quotations of Ukrainian rebar have started going up ($10-20/t up in two weeks). As a result, the material of ArcelorMittal Kryvyi Rih from stockists is available by $50/t higher than from mills, while prices for Turkish products are just $5-10/t higher, which shows that they are less attractive for end-users, though being $30/t cheaper than Ukrainian products offered ex-warehouse Baghdad. However, some traders are ready to sell both Ukrainian and Turkish rebar at prices by $10-20/t lower than the general levels.
( Source: www.metalexpert-group.com )