Longs prices in the Mediterranean region are on the rise this week, mainly driven by Turkey’s uptrend and somewhat limited availability of offers from North Africa. As a result, most of the suppliers have increased their offers, but the market is still taking its time to accept them.
In Turkey, current export prices for wire rod have been mainly reported at $590-605/mt FOB, up from $585-590/mt FOB last week. “Scrap is up. There is literally hardly any billet around, so the prices certainly move up,” a producer told SteelOrbis. In the domestic market, wire rod offers have also jumped up, by $5-15/mt to $590-610/mt ex-works. Some sources say that the earlier announced safeguard case on wire rod imports in Turkey has had an impact on the market, making buyers cautious regarding imports from Egypt and Malaysia in particular. The indicative offers for these origins are at $590-600/mt CFR and $565-570/mt CFR for December January shipments, while Russia/Donbass material is available at $570-575/mt CFR for prompt cargoes. Overall, import wire rod offers to Turkey have increased by at least $10-15/mt over two weeks.
Egyptian mills are now aiming at $570-580/mt FOB for both rebar and wire rod, while two weeks back $555-565/mt FOB was workable in sales to the EU, the US and Africa. In the local market, the workable US dollar equivalent levels are reportedly at $770-810/mt ex-works, depending on the payment terms and lead times.
Algerian producers are out of the market for now, being well sold out for exports and enjoying lively demand in the domestic market. The previous offer from one of the producers stood at $560-565/mt FOB, for both rebar and wire rod.
In addition, rebar and wire rod offers from Russia and Donbass, seen in Turkey and Africa, have been reported at $550/mt FOB for December shipments, up $10-15/mt over the past fortnight.
Asian suppliers, including Indonesia and Malaysia, are at $530-540/mt FOB, up by around $5/mt over the mentioned period. No activity has been seen for this origin, given the high prices and limited quota opportunities in the EU, the cautious safeguard-related mood in Turkey, and the overall long lead times, SteelOrbis understands.
