Week 5 saw slackening of activity with the onset of Chinese Holidays as offers dried up. Market was in consolidation after whirlwind period of hikes.
The long product market was somber as correction setting in after the debacle in scrap prices during the last fortnight.
The political turmoil in Egypt has left its mark on the long product market with demand impediment leading to surplus volumes in Turkey. It is noteworthy that Egypt buys nearly 50000 tonnes to 80000 tonnes of Turkish rebars and any roadblock will backfire having negative impact on the distribution chain.
In retrospect perked buying in January was superficial based on speculation rather on actual demand. With the sole exception of Germany apparent consumption has been sluggish.
The general mood is solemn which portends to resist any price increase. The Chinese supplier on the other hand look set to hike offers after the holidays. An obstinate input market with coke and iron ore prices refusing to budge any correction will be limited. In trade off correction seems immediate possibility.
(Source: www.steelguru.com )