The Australian market might provide certain possibilities for Turkey’s long steel exporters, now since the AD investigation in Australia has been dropped. Although the potential volume of trade is foreseen to be limited, still Australia may become an additional sales outlet for Turkish mills amid their generally challenging sales situation abroad.
Australia may become a regular buyers of rebar from Turkey, especially once its antidumping investigation on imports was dropped at the end of June. In order to sell to Australia, the ACRS certificate is required, which, according to market sources, Turkish producers Diler Holding, Colakoglu Metalurji, Habas and Kroman possess. The average monthly inquiries total 5,000-8,000 mt of rebar from Turkey, mainly container shipment is preferred at $40-55/mt per container freight cost and for around 40-45 days’ sailing time, sources say. At present, $545-550/mt CFR could be the workable rebar levels from Turkey to Australia, sources indicate. Along with rebar, Australia is rather promising in terms of wire rod imports of baby coils (1.5 mt weight) which are preferred, SteelOrbis understands.
Turkey shipped 99,657 mt of rebar to Australia in 2018 and 32,266 mt in the first half this year (under HS code 721420), according to the TUIK data. Overall rebar sales in 2019 are expected to hit or even exceed 100,000 mt. As for wire rod, the traded volumes were 8,897 mt and 1,532 mt in 2018 and the first half of 2019 respectively (HS code 721310).
However, international suppliers’ presence in Australia could be undermined taking into account the gradually strengthening positions of the local producer now belonging to Liberty House Group, as well as expansion plans for the asset. “Liberty pushed for the antidumping investigation once and they will surely do so again in order to protect their market,” a Turkish trader believes.