The recent flurry in billet prices from Turkey and CIS mills has stirred the calm water of Gulf Stream.
It is learnt that the mills have been pushing higher prices. Partially the propulsion is fuelled by the recent hike in scrap prices. However the mills have been riding the crest backed by resounding buying by Iran over the last 1 month. The UN sanctions have spurred buying to build inventory. Moreover the depreciating RIAL is forcing buyers to swap currency with commodities leading to spike in demand as hedging tactics.
LONG
The current billet offers from Turkey is USD 580 per tonne to USD 590 per tonne CNF, Dubai whereas distant sources viz., Brazil & CIS is offering at USD 600 per tonne to USD 610 per tonne CNF main Dubai port.
However the billet push has not filtered down to the re bars which is being offered at USD 615 per tonne to USD 620 per tonne, with no takers. The last concluded orders where at USD 583 per tonne to USD 595 per tonne about 3 weeks ago.
It is noticeable that the spike is having only residual impact in the domestic market sentiments. With the demand still elusive the buyers are playing a game of up-brinkmanship switching their loyalty at every drop of hat depending upon lucrative price and credit terms. The domestic levels are prevailing in the band of AED 2250 per tonne to AED 2350 per tonne ex stockyard with the lower end for cash payment.
FLAT
The flat product market has been inactive. The HRC offers are going at USD 640 per tonne CNF with small bookings. No major booking is reported as the demand is slow.
Plate is being transacted at USD 700 per tonne CNF, from Ukrainian sources HDG in 0.4 mm with standard coating is going at USD 850 per tonne to USD 870 per tonne CNF with Indian mills extremely aggressive. It is learnt that some Indian mills are offering tailor made orders of as low as 1 container with immediate delivery from their stockyard or shipment within 1 month from mill.