Export quotations of longs down in Turkey - 04 Oct 11

Turkish exporters of longs could not prevent prices from falling due to extremely slack demand in the domestic and foreign markets amid unstable economic situation and a considerable drop in prices for import semis. Nevertheless, most foreign consumers refrain from deals so far, expecting a further decrease in quotations.
Now, rebar is being offered to the foreign markets at about $700-710/t FOB (down $10/t in a week). However, the buyers are sure the suppliers will be ready to take $690-695/t FOB while closing deals. In particular, Turkish suppliers have been offering rebar to the UAE, one of the main sales markets, at $695/t FOB ($710/t С&F theoretical weight basis). Although such offers are rather attractive for the UAE buyers, they have adopted a wait-and-see mode so far, having sufficient stocks of import material and waiting for a further downturn in prices. Consumers from Iraq, where construction projects are being implemented rather quickly, have suspended purchases by the end of the month, hoping to get more significant discounts, though Turkish rebar is offered to them at $720-730/t EXW, down $20/t from last week. Despite some rise in domestic prices in Syria on stronger demand, no bookings have been reported due to longer delivery period. Egyptian, Lebanese and Yemeni consumers say they are ready to sign contracts, but at the level no higher than $690/t FOB, which is probable to be achieved in early October. US consumers are also in no hurry to buy, having replenished their stocks with import material earlier.
Suppliers have cut prices for wire rod by $5-10/t in a week, to 725-735 $/т FOB. Meanwhile, most offers to the overseas consumers are reportedly made at $725-730/t FOB, but some exporters, Habas in particular, are selling the products at $715-720/t FOB. Prices for Turkish semis to foreign buyers have declined by $10-15/t to $670-680/t FOB in the same period. Nevertheless, some plants are keeping their prices at $690/t FOB, market participants report. Meanwhile, prices for CIS billet to Turkish consumers are currently $655-665/t C&F (down $30/t in a week), and though no deals have been reported so far, the Turks are likely to start trading soon. Market participants also report offers of Greek billet to Turkey at $675/t C&F, demand being flat though.