Mediterranean and Black sea markets have not seen much change over last week where
Russia and
Ukraine were not really aggressive with exports based on their strong local market conditions. Other markets such as
Turkey and
Egypt have mostly maintained their last week levels.
Prices in the Turkish local market have softened on TRY basis, particulary in Iskenderun region, after Isdemir dropped its prices last week. Prices also softened on US Dollar basis, as the TRY gained some value against USD recently. We must take into account that such price changes are related to exchange rates rather than a change in supply/demand balances. Ex works price for 12 mm
rebar in Turkish local market was around TRY 870-910/mt including VAT ($500-520/mt excl. VAT).
October shipment Turkish export offers were heard in $505-515/mt FOB range. Some producers were heard to offer $5 below this range while on the other hand a producer was heard to make offers slightly above this range for November shipment.
The most active market in terms of exports during August was the
UAE. There was also some activity in
Israel although at limited quantities. US market appears to have slowed down considerably compared to early summer.
Offers for Turkish
wire rod remain at $480-485/mt FOB and seem to struggle with
China. Turkish producers are in a tough competition with
China both in the US and South European markets. We may expect more aggressive offers from them after the holidays aiming to compete with
China. On top of that, the new rolling
investments due to complete soon may leave Turkish producers in more difficult positions.
The strong local market in the
CIS is putting pressure on traders doing business in these origins. Russian producers have hiked their local
longs prices this week by $10-15/mt. These hikes are obstacles in front of getting competitive offers particularly ex-Black Sea ports for both
wire rod and
rebar exports.
Mittal Steel Kriviy Rih,
Ukraine's largest
wire rod and
rebar producer, continues offering large coil mesh quality
wire rod at $455-470/mt FOB level. While offers for Eastern
Europe are at high-end of this range, offers for the
UAE are heard to be given at lower levels. On the side of
rebar, while offers are at around $470/mt FOB, except for Algeria, sales to this country are heard to have concluded at $465/mt FOB level.
In Middle Eastern and Gulf countries, where prices registered declines during July, now the prices are following a stable trend. Prices offered by the producers in the
UAE are at around $580/mt ex-works on theoretical weight basis. Demand is strong and prices indicate variety in Saudi Arabian market. Prices may decline in a day and may rise in another day. Price levels offered to Saudi Arabian
trading firms are at around $558/mt.
Egypt's offer for
rebar is at around $510/mt FOB, and at around $485/mt for
wire rod. Due to the slowdown in the US market and the
China factor,
Egypt seems to be active mainly in the near markets.
There is no significant change in Black Sea and Mediterranean markets compared to last week. Holiday period in
Europe is coming to an end and the attention is focused on this market. SteelOrbis has been reported that buyers in the southern
Europe have already started negotiations with the producers in the exporting countries, in terms of both
wire rod and
rebar. The market in southern
Europe was quite strong before the holiday period. One of the major factors that will impact the market in September is the stock levels of
Europe and that whether the Europeans will be active as expected in the post-holiday period. Another major factor is whether the Chinese prices, which have slightly rebounded, will relieve the producers in Black Sea and Mediterranean regions, by increasing further with the end of monsoon season.