Period of Uncertainty..Tayfun Senturk Diler Dis Ticaret A.S Commercial Mng.

Period of Uncertainty..Tayfun Senturk Diler Dis Ticaret A.S Commercial Mng.

We asked about the latest developments in the markets to Diler Dis Ticaret A.S Commercial Manager Tayfun Senturk. T. Senturk: Why I started referring to uncertainty is because nobody can give an exact definition for such high levels of increase seen in the steel prices during the past year. Even the most experienced producers and traders in the market come up with contradictory theories on this upward trend and it is almost impossible to take healthy future decisions. The end users, traders and finally the producers are all extremely disturbed by this uncertainty. This increase is mainly to the advantage of raw material suppliers and transporters. For this reason, we do not receive any complaints from their end. To speak the truth, it is the golden age for the market players from these sectors. SteelOrbis: What do you attribute this increase to? T. Senturk: Initially the increase of raw materia prices triggered the product prices and consequently, the activity particularly in Pacific region resulted in the historical peak of the freight markets. Accordingly, producers had to increase product prices and what is interesting is that, the global markets especially driven by China, Far East, Europe and Arabian countries accepted these increases. Having said that, we have now again entered a 4-5 year of upward trend particularly in northern hemisphere after the worldwide stagnation between years 1998-2002. As no return is expected in these markets in the meantime. This trend also showed its impacts in the domestic market especially for long products. Everybody living in Turkey already observes these reasons and growing positive atmosphere. SteelOrbis: Did you expect such an appreciable increase? T. Senturk: No. We expected an increase, however not at these levels. SteelOrbis: What are your expectations regarding the oncoming quarter? T. Senturk: Currently, reinforcing bar price is at the levels of $400-410/mt FOB. Even though there is not too many bookings at these levels, this is the requested price. The billet prices are at $350/mt FOB levels and I believe they will maintain such level for another 1 or 2 months. A little increase may occur afterwards which might even be followed by a slight correction may be experienced. However, I expect an upward trend at the end of this period. Interesting developments are very likely to occur particularly in billet prices. SteelOrbis: Thank you.