North African rebar and wire rod producers have decreased their export offers slightly following several weeks of stability, while demand has been limited. The European markets are mainly on holiday at present and only some negotiations are slowly restarting for the new EU quota period due to start on October 1. Deals to the US are quite problematic considering the current 50 percent cumulative import duties, since buyers and sellers are reluctant to take risks. Some demand, however, has been coming from the MENA region, but for limited volumes.
Egyptian export offers for rebar and wire rod have decreased by $5-10/mt over the past two weeks and are currently standing at $535-545/mt FOB and $550-555/mt FOB, respectively. The material is offered for end-of-September and October shipments. Small inquiries have been reported from Romania and Bulgaria. Saudi Arabia is also active with the price levels offered at around $555-560/mt FOB for wire rod. Egypt’s domestic market has been doing quite well recently, easing the pressure on mills to export. In July, local rebar consumption in Egypt was almost 620,000 mt, up from 395,000 mt seen in June. The local rebar and wire rod prices in Egypt are at EGP 38,200/mt ex-works from the leading local mill or around $695-700/mt ex-works.
One of the Algerian mills is in the market with $545/mt FOB for rebar and $550/mt FOB for wire rod for early October shipments, while another producer, according to market sources, is at $535-540/mt FOB for rebar and $525-530/mt FOB for wire rod. The local rebar and wire rod prices in Algeria, according to sources, are at $720/mt ex-works or DZD 111,500/mt ex-works including 19 percent VAT.
Import longs offers to North Africa continue to come, as usual, from Asia, Russia and Turkey. Turkish mills are at $530-540/mt FOB for rebar and $550-560/mt FOB for wire rod. Some buyers in Israel have reported offers at $580-590/mt CFR LO for rebar and around $600/mt CFR LO for wire rod. Chinese suppliers have been offering wire rod at $570-580/mt CFR to Israel and at $560-570/mt CFR to West Africa. Chinese rebar offers have been heard mainly at $560/mt CFR. Russian offers are also in the picture - at $570-580/mt CFR LO to Israel, SteelOrbis has learned.
$1 = DZD 130.
$1 = EGP 48.
