Long product markets-Price rises on one side, uncertainty on the other

In Europe, the most active markets are Italy and Portugal in terms of long product market. These markets are followed by Spain, which has relatively gained a kind of momentum recently. The fact that rebar prices in the local Italian market have reached Euro 400-405/ton delivered to customers' premises have opened the way for imports. Currently, Italian rebar export offers for Algeria are reportedly at Euro 390-395/ton. Under the current circumstances, it seems impossible for Turkish rebars to enter the Algerian market, due to the duty disadvantage. However, Ukraine and Russia, which have yielded their most important export market to the Italians, have started to give competitive offers to the Algerian market following the rise in Euro/Dollar exchange rate. Certain Ukrainian trading firms reportedly ask for $390-395/ton FOB levels for rebar. They may compete against Italian offers with these levels. However, trading firms do not have sufficient stock at these levels. A possible price increase in Ukrainian and Russian rebars may prevent Russia and Ukraine to keep their presence in this market. In the Middle Eastern market, Israel keeps rebar imports. Currently, rebar purchases concluded by Israel are at around $440-445/ton CFR. At the Gulf region side, the UAE has concluded Turkish rebar purchase at $430-435/ton CFR on theoretical weight basis. The latest offers given to the importers in the UAE are at around $445/ton CFR. Whether this level or above will be accepted will be clear in the week starting March 6, 2006. This week, uncertainty has dominated the market. Most of the major players in North Europe, Middle East and Gulf region have planned to set their price strategy through the end of March and in line with the price trend in Black Sea scrap in April. However, the fact that different expectations have emerged about the future of Black Sea scrap has caused uncertainty in the market.