Middle East steel market remained saddled with uncertainty as the buying was sporadic showing slack activity.
Moreover the current import offers are over priced but all the same they continue to rise on increased levels.
Scrap prices have become pivotal in determining the long market trend. The rally in scarp prices has made billet and rebar offers from Turkey and Black Sea dearer. Buyers seem to be mystified with proclamations about extended booking.
In case of flat products, South Korean suppliers have already started testing the market with offers of 2mm to 6mm HRC at USD 710 per tonne CNF against USD 630 per tonne to USD 640 per tonne CNF in early December. One prominent Ukrainian mill is quoting its January production at USD 680 per tonne CNF. However, the company is expected to lift prices for its February production of HRC very soon by another USD 20 per tonne to USD 30 per tonne., termed as backwaters in past, has come out of hibernation as the domestic prices continue to catch up last week with surging global levels.
The market is in schism between go getters and procrastinators. Some are actively looking for material, whereas others opt to wait for a possible down turn during first quarter of 2011.