Longs imports to Algeria doubtful despite competitive offers

Tuesday, 15 October 2019 16:04:56 (GMT+3)   |   Istanbul
       

Import longs steel offers to Algeria have decreased by around €10-15/mt since late September and could be considered competitive if compared to the local prices in the country. However, no serious business is expected to be closed.

According to the market sources, rebar offers from Italy are standing this week at €400-405/mt ($440-445/mt) CFR Algeria, while the wire rod is available at €415-420/mt ($457-462/mt) CFR, both for November shipments. However, some sources say that €10/mt lower prices might as well be available. In the meantime local Tosyali Algerie’s rebar and wire rod prices continue to stand at DZD 61,000/mt ex-works and DZD 69,000/mt ex-works, respectively; with these levels corresponding to $464/mt ex-works and $481/mt ex-works.

Although the difference between import and domestic long steel offers is rather significant, market players believe there will not be much interest in the material from abroad. One reason is the still subdued local demand amid the complicated political situation. “No real demand from Algeria, just fishing. Tosyali made important decreases since July and importers lost money. Anyway internal market is almost dead,” a trader told SteelOrbis. Another source has mentioned that in order for Algeria to import longs, the prices have to be far below the Tosyali Algerie’s domestic offers.

US dollar-denominated prices exclude nine and 19 percent VAT for rebar and wire rod, respectively.

$1 = €1.1

$1 = DZD 120

 


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