Turkish long product exporters are trying to resist the downward trend amid a slight increase in demand from foreign buyers and signs of better situation in the segment for import scrap. Besides, revaluation of the national currency seen in the domestic market is also influencing the exporters’ pricing policy.
Market insiders differ in their market forecasts. Some of them believe Turkish exporters will manage to fix prices in early November. The others suppose the upturn in demand will be short-lived, so they are going to put down offers again by at least $5/t next week. However, some think customers from Southern Europe (mainly those from Italy and Spain) may become more active on considerable euro revaluation.
Whereas early this week Turkish suppliers were offering rebar to foreign customers at $645-655/t FOB, by the end of the week, having closed a number of deals with Middle Eastern buyers, most of them have attempted to drive prices up to $655-665/t FOB. However, there are higher prices in the market already – $670/t FOB, though some exporters are still ready to sell the material at $650/t FOB. Moreover, market participants say some suppliers have withdrawn their offers to foreign customers, not willing to make reductions.
By the end of the month, demand from Iraqi buyers has grown even more as for them rebar prices have lost some $15-20/t in a week. They close deals at $680-685/t EXW. As a result, producers from Iskenderun are considering the price rise by $5-10/t if demand stays strong in Iraq. Trading companies from UAE have also become more active at the end of the month. Market operators say early this week they were signing contracts at $640-645/t FOB, though buying is still moderate. Some deals have also been made with Egyptian buyers at $645-650/t FOB, though for small batches only. Most of US traders are still in a wait and see mode receiving offers higher than the general levels – $670-680/t FOB. Suppliers say small amounts of rebar will probably be sold to West Africa and South America, as well as to Yemen in the near future. In the segment for mesh-quality wire rod there were lower offers at the beginning of the week. Thus, some producers, including Habas, quoted $660-665/t FOB. By the end of the week most offers have stood at $670-680/t FOB. Still, demand for the material is slack. Export prices for Turkish billet have fallen by $10-15/t over the same period, to $600-610/t FOB, though some producers set prices at $615/t FOB. Offers at the lower end of the range are coming mostly to Saudi Arabia. Traders’ quotations of CIS semis to Turkey have decreased by $5-10/t over the period under review, to $600-610/t С&F. Yet, interest in import material is minimal, as domestic billet is available at more attractive prices.
( Source: www.metalexpert-group.com )