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Turkish longs exporters lift offers amid price growth in domestic market - 12 Jul 11

Although Turkish longs suppliers have failed to export large volumes of the material even after a price decline, they have started to raise export offers step by step referring to higher quotations in the local market on growing sales. However, they have not stirred foreign buyers up in such a way, as the latter doubt the trend will last for a long time and mostly prefer to wait and see.
Market players report many sellers have increased rebar offers to $735-745/t FOB (by $30/t in a week) in several steps. At the same time, they have decided to switch to domestic supplies and so the volumes available to foreign buyers are limited now. Yet, some suppliers who mainly offer the material abroad are ready to cut prices to $730/t FOB if a buyer is interested in a deal.
As a result, the number of deals has dropped to minimum this week since overseas buyers have found some reasons to postpone new purchases. For example, UAE buyers who stockpiled some import material a week ago are unwilling to sign contracts at prices equal to domestic ones (excl. import duty). Those from Syria and Lebanon also refrain from purchases insisting on at least $20/t discounts. Current rebar quotations are unacceptable to Egyptian customers either, as they can book locally produced longs by $20-30/t lower. Thus, Iraq has become one of the few sales markets for Turkish rebar this week. Market operators say several small lots were sold to this destination at $740-745/t EXW July delivery at the beginning of the week.
In the segment for wire rod, given moderate domestic demand, suppliers keep seeking for foreign buyers. Nevertheless, they have not missed the chance to lift prices for August output by $20-25/t over the week, to $745-760/t FOB, which is still by $15-30/t lower than domestic levels. However, suppliers have difficulties selling large lots, and they sell only small amounts successfully to East and West Africa as well as to South America.
 Increasing prices for finished longs have affected quotations of semis to be made in August (up $20-25/t over the week). Noteworthy, some producers, including Habas and Icdas, succeeded in selling small lots to Egypt and Saudi Arabia at $670-675/t FOB at the beginning of the week, and then they pushed offers up to $685-695/t FOB. Domestic prices for square billet are by $10-15/t higher, proving suppliers’ intentions to sell most of the material to foreign markets. At the same time, July output from Ukrainian mills, which is available to Turkey by $60-65/t cheaper than rebar, is rather attractive to local buyers. Yet, the most recent deals were made at $675-680/t C&F early this week, steel traders report.
( Source: www.metalexpert-group.com )
Jul 12, 2011 08:04
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