Turks attempt longs turnaround—will the US bite?
For several weeks, import offer prices of rebar and wire rod to the US from Turkey kept slipping further and further down, while many potential US customers just sat back and waiting for prices to hit bottom. But instead of hitting bottom and staying there long enough for buyers to actually have a chance to buy, Turkish longs prices bounced back up this week before many had an opportunity to book at the lowest prices of the trend.
Usually, this would be a “you snooze you lose” sort of situation for US buyers, who should’ve ordered while import prices were on the downslope instead of waiting for a more opportune time. But their negative reaction was immediate—why would they pay higher prices for imports, when domestic prices were so soft? In response, many traders did not bother lowering their sales offers to match the increasing CFR price trend, partially as a way to placate their customers but also because many felt the uptrend in Turkey would only be temporary. By the end of this week, there seemed to be something to that theory. Turkey continued to increase export offers for wire rod and rebar, but according to sources in Istanbul, Turkish mills were becoming more and more aware of lackluster foreign demand. Sources in the US believe that by next week, Turkey’s export longs offers will begin to reflect this sensibility.