Turkish exporters of longs hoped for an upturn in demand in early March in vain. Most foreign buyers are still sticking to wait-and-see attitude in an attempt to make suppliers reduce their prices. However, the latter have stubbornly left their export quotations unchanged from last week. They are sure that foreign buyers will start purchasing the material again in the next two weeks in view of dwindling stocks and a pick-up in buying activity in most countries. Besides, they want to protect the companies with whom they signed contracts previously.
Most mills, including Izmir Demir Celik, Habas and Kaptan Demir Celik, are offering their rebar at $655-660/t FOB, while more optimistic producers are quoting their material at $665/t FOB. Nevertheless, some buyers report that manufacturers are ready to reduce prices to $650/t FOB even for small lots in case the client is interested.
Only small batches of longs (up to 3,000 tonnes) have reportedly been changing hands in the Middle East in early March. In particular, Emirate buyers have made a number of bookings of rebar at $650-655/t FOB actual weight basis ($670-675/t C&F theoretical weight basis). Besides, Turkish material has been offered to Lebanon at $650/t FOB ($660-665/t C&F actual weight basis), however, local buyers prefer to sit on the sidelines yet. At the same time, the material is available to Kuwait at $650-655/t FOB ($680-695/t C&F theoretical weight basis). Kuwaiti buyers are interested in purchasing it as domestic producers are pricing their rebar high. At the same time, Saudi consumers prefer local material due to its affordable price, and in Iran domestic prices are much lower than import offers.
Egyptian buyers still show weak demand after the political coup. So, they are reluctant to purchase Turkish rebar, even though it is quoted $10/t below the level of domestic prices. However, Turkish suppliers prefer to sell their material elsewhere in view of still unstable situation in North Africa.
The Turks are actively selling their material to Singapore at $650-660/t FOB actual weight basis ($680-700/t C&F theoretical weight basis) as this level is by $40/t lower than offers of local rebar. However, Singaporean buyers have suspended purchases at the moment, as domestic prices have rolled back in the country.
Quotations of local rebar have lost some $20/t in the USA amid weakening demand. So, US consumers are hardly signing any deals on import material at the moment. Traders say Turkish rebar is quoted to the USA at $690-695/t C&F theoretical weight basis, unchanged w-o-w. Some small batches of rebar (1,000 tonnes) have reportedly been booked to Brazil at $710/t C&F actual weight basis.
At the same time, manufacturers of hardware, welded mesh and cars are showing stronger demand for wire rod in a number of countries. Nevertheless, foreign buyers are booking somewhat less Turkish wire rod since its prices gained $5-10/t last week, reaching $675-685/t FOB. However, in the USA domestic quotations of wire rod have added another $30/t, though they were rather high. So, local buyers will likely increase purchases of import the material soon. Potentially, Turkish suppliers of wire rod have a chance to sell their material to Singapore, where domestic prices are by about $20-25/t lower. But Singaporean buyers still prefer to refrain from purchases.
As for semis, Turkish square billet is still quoted a mere $25-30/t below the offers of rebar, though its prices have lost $5/t w-o-w, sliding to $625-635/t FOB. So, billet suppliers probably hope to increase their sales in near future. In particular, they have reportedly sold 25,000 tonnes of the material at $625/t FOB. At the same time, buyers refuse to purchase CIS semis as domestic quotations are almost at the same level.
(Source: www.metalexpert-group.com )