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Iraq: stockists suspend rebar imports - 29 Mar 11

Iraqi longs market is seeing high buying activity. The budget for 2011 is already approved and there will be a big number of private projects in the country; so construction segment is expected to recover fast. Nevertheless, since steel traders have been replenishing stocks with import material since end-February, they are presently delaying purchases in view of increased rebar offers.
Iraqi buyers still prefer products of Ukrainian origin due to better quality and despite higher prices for them compared to Turkish material ($5/t). Thus, offers of rebar from ArcelorMittal Kryvyi Rih are now about $770-790/t CPT Baghdad. However, the latest contracts for the material of April rolling were detected at $750/t CPT Baghdad (20,000 t) in mid-March, before the price growth. Last week Iraqi trading companies reportedly bought 25,000 t of Ukrainian rebar from Syrian traders at about $765-770/t CPT Baghdad. Besides, Turkish material, prices for which increased before mid-month, was booked at $765/t CPT Baghdad in the same period of time.
Domestic prices have headed up too. Nevertheless, Ukrainian material is still available in the secondary market by $10/t higher than Turkish one. However, the prices may gain another $5-10/t soon considering that construction activity is growing rapidly.
(Source: www.metalexpert-group.com )
Mar 29, 2011 10:56
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