Algerian mills have started the year with a price increase in the domestic longs market, given some improvement in business activity.
Local producer Tosyali Algerie has increased its prices by $7-8/mt (DZD 1,000 mt) from mid-December to $511/mt (DZD 66,500/mt) ex-works for rebar and to $525/mt (DZD 74,500/mt) ex-works for wire rod. Another domestic producer Algerian Qatari Steel has followed the uptrend as expected. According to sources, the company’s official rebar price for orders of 1,000 mt and less is at $527/mt (DZD 68,500/mt) ex-works, up $16/mt (DZD 2,000/mt). For 5,000 mt and above orders, however, AQS is ready to deal at $515/mt (DZD 67,000/mt) ex-works, SteelOrbis has learned. The supplier’s wire rod offers for the local market have increased by $14/mt (DZD 1,500/mt) since mid-December to $530/mt (DZD 75,250/mt) ex-works.
As a result, the domestic demand for longs in Algeria, though still limited, provides enough support for producers to gradually increase their prices. In addition, livelier billet imports are expected in Algeria soon now that companies seem to be allowed to import on CFR basis. Some inquiries for 10,000-15,000 mt have been reported, with around $430-435/mt CFR targeted. In addition, one of the large buyers is expected to reopen its billet import tender by the end of the month, SteelOrbis understands.
Prices on US dollar basis exclude nine and 19 percent VAT for rebar and wire rod, respectively.
$1 = DZD 119.32