The unabated rally in long product prices triggered by spike in scrap and billet prices has charged up the Turkish mills to attempt increase in rebar prices by another USD 10 per tonne during last week.
However circumspection is prevalent as demand grows only at slow pace. It is reported that there are some definite signs of stock depletion leading to replenishment activities by end users. Hence traders will be active in the coming weeks amidst heightened domestic quotations and digestion of this modest hike seems feasible.
Most producers, are maintaining the offer levels of month ago for rebar at USD 615 per tonne to USD 620 per tonne FOB but some mills, like Ekinciler and Nursan Group, have already announced new prices USD 625 per tonne FOB.
With mild build up in construction activity in Saudi Arabia, Syria, Iraq and UAE has improved transactions in these markets which have been made at an average of USD 615 per tonne FOB actual weight. In Egypt the proposition is still unattractive as Turkish suppliers have lost price advantage over domestic mills.
The wire rod market has been relatively unenthusiastic maintaining status quo at USD 620 per tonne to USD 630 per tonne FOB for nearly a month, whereas some mills have signed contracts at USD 10 per tonne to USD 15 per tonne less with buyers from Saudi Arabia, Syria, Lebanon and the USA.
In the square billet segment, prices keep growing amid both increasing demand from foreign buyers and tight supply. Thus, exporters of billet have increased quotations by USD 5 per tonne to USD 10 per tonne, to USD 580 per tonne to USD 590 per tonne FOB. The material has been offered at USD 580 per tonne to USD 585 per tonne FOB to Middle East market.
In view of continuous rally in offers from Black Sea port at USD 575 per tonne to USD 585 per tonne FOB Turkish offers may go up to USD 595 per tonne FOB within a week.