Although demand is still weak in the majority of regions, Turkish exporters of long products are keeping up prices citing volatility in import scrap prices. Unwilling to book expensive scrap, some Turkish producers have started to acquire large tonnages of CIS-origin semis. Local rebar demand is not enough to support exporters.
The outlook is so far uncertain. Pricing in the finished steel segment will fully depend on scrap price levels. Yet, the majority of market players are pessimistic.
The current offers for rebar to overseas buyers, for May shipment mainly, are still at end-March’s $600-605/t FOB. Most suppliers are ready to take $595/t FOB on large orders.
Two Marmara-based suppliers are said to have marketed a total of 60,000 t of rebar to the UAE at $605-607/t CFR, theoretical weight, end-April shipment (some $595/t FOB). Last week’s offers to the UAE were $595-600/t FOB ($605-610/t CFR). There is so far only one producer that has announced the price to the UAE for May shipment – $600/t FOB ($610/t CFR).
Iraqi customers are sitting on sufficient stocks and do not need much rebar. Only 8,000 t has been booked from Turkey at $615/t EXW, Metal Expert estimates. The general price range for this market is $610-615/t EXW, unchanged from last week.
Israel can buy Turkish rebar at $600/t FOB ($630/t CFR). The upper level has dipped $5/t over the week. However, buyers want discounts of $5-10/t for they replenished inventories earlier.
Turkey has marketed some small rebar batches to Africa’s countries at $595-600/t FOB, down from initial offers of $600-605/t FOB, Metal Expert hears.
Turkish rebar makers set their hopes on the US market. They have cut $5/t on the upper end to the USA to $595/t FOB ($610/t CFR, theoretical weight). At the same time, they will reduce the price to $590/t FOB ($605/t CFR) on large orders. Bids are $585/t FOB ($600/t CFR) now though. It seems likely that the US customers will start making deals by the middle of the month.
Export prices for Turkish mesh-quality wire rod to be shipped in May are fetching at $600-610/t FOB, unchanged from a week ago. However, it stays unattractive to buyers.
Turkish semis have lost $5/t over the period on weak demand to $540-550/t. However, only large deals can be concluded at the lower end of the range.
Meanwhile, Turkish buyers have raised purchases of CIS-origin billet, closing deals mainly with international trading companies. In late March two mills from Marmara region bought 10,000 t of the material each at $540/t CFR, for early-May shipment, Metal Expert learns. A sections producer from Izmir region booked 10,000 t of billet with immediate shipment at $547/t CFR last week. A large mill from Iskenderun region purchased 10,000 t of semis from a trader at $540/t CFR and approximately 10,000-15,000 t from a Ukrainian producer at $536/t CFR, for early-May shipment.
At the beginning of April, Turkish buyers have continued to book CIS billet for May shipment. Two batches of Ukrainian casting (20,000 t and 10,000 t) have been sold through a trader to Iskenderun region at $540/t CFR, Metal Expert hears. Another batch of 7,000-10,000 t has been booked by a mill from Izmir region at $536/t CFR.
At the moment, CIS semis are available to Turkey mainly from traders at $535-540/t CFR Marmara (by $10/t down in a week), with bids coming at no higher than $530-535/t CFR. Billet imports to Turkey are expected to slow soon.
(Source: www.metalexpert-group.com )