Rebar prices rise in Turkey, same expected in Europe after holidays

Friday, 31 July 2009 16:56:42 (GMT+3)   |  
       

Rising scrap and billet prices have this week had a very strong influence on the Turkish longs market. Producers have increased their rebar prices in both domestic and export offers. While the merchant bar and wire rod export markets are performing well, the same cannot be said for rebar exports.

Although Turkish rebar producers are experiencing difficulties in both the domestic and export markets due to weak demand, they have been obliged to reflect the uptrend in scrap and billet prices in their rebar price levels. Thus, rebar prices in the local market have increased to TRY 830-860/mt ex-warehouse including VAT ($475-492/mt ex-warehouse, excluding VAT), while export offers have increased to $480/mt FOB. However, it seems that these uptrends have not yet been met by the desired levels of acceptance on the demand side.

A rising trend to that seen in Turkey is expected in Europe after the holidays. As of today, July 31, many European rebar markets are entering the holiday period and the most widely discussed issue in these markets is the possibility of a price increase after the holidays. Rebar producers (who failed to increase their prices before the holidays since demand failed to reach the desired levels) in these markets are mentioning that they expect an improvement not only in prices but in demand as well.

In southern Europe, rebar prices have this week been on average at €360-370/mt delivered to customer in Spain and Greece, at €330-340 ex-works in Italy and at €345-350/mt delivered to customer in Portugal. While the deals in the local markets have this week continued to be concluded for small tonnages, prices have still shown variation depending on tonnage and customer. Rebar export offers from the abovementioned countries have this week been at €330/mt FOB on average. It is mentioned in these markets that prices will likely register an uptrend in both the domestic and export markets after the holiday.

In the rest of Europe, the general outlook and overall situation are almost the same as in southern Europe: deals are for small tonnages, prices vary depending on customer and tonnage and a possible price uptrend is being mentioned for the post-holiday period. Besides the rising scrap and semi-finished prices, the expectation of a possible rise in demand after the holidays is still the main factor supporting the likelihood of an increase in producers' prices in post-holiday Europe.


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