The uptrend in long carbon steel prices in global markets has this week been reflected in the raw material, semi-finished and finished steel markets. With rising import scrap costs being reflected in billet and rebar prices in Turkey, ex-Turkey and ex-CIS semi-finished and finished steel offer prices to the Middle East have increased. Whereas Europe has already entered its holiday season, trading activity is particularly slow in the Middle East as Ramadan gets closer.
With demand in the local UAE rebar market at normal levels, prices in this market have been following a stable trend. However, it is mentioned that ex-Turkey rebar offer prices to this destination may register an increase as general billet and rebar offer prices to the UAE are on the rise. Currently, ex-Turkey rebar export offers to the UAE are at $520-530/mt CFR UAE on theoretical weight basis. However, no great demand is seen for this price range.
Looking at the local Turkish market, this week rebar prices are observed to have once again increased despite slow end-user demand. It is noted that traders are generally not willing to increase their stocks due to the proximity of Ramadan. However, some traders prefer to keep their stocks at high levels as they think that prices will not decrease in Ramadan on the back of continued demand from the Far East during that month. With ex-Turkey export rebar offers currently at $500-510/mt FOB, the Egyptian and Iraqi markets, which had been active in recent months, are silent at the current time. With local producers in Egypt having decreased their prices in the past three months and also taking into account the general elections in Iraq, no consistent development trend has been observed in these countries.
In Europe, a price uptrend has been observed in some countries despite the holiday season. Bulgaria, Spain and Portugal are the main countries where price increases have been seen. Rebar prices have risen by €25/mt in Spain and Portugal, with raw material and semi-finished steel prices and the general price increase in the global steel markets being cited as the principal reason behind this rise. It is mentioned that producers in other European countries will likely increase their rebar prices by the same margin after the holidays, and market players agree that demand from stockists and traders will support this movement. However, the likely response of end-user demand is still not clear. Nevertheless, possible positive developments in the global economic situation may exert a beneficial influence on the construction sector, and thus on rebar end-users, in terms of the resumption of suspended or aborted projects.