The long steel trade has been somewhat slower recently, particularly due to the approaching Easter holidays, while, in the meantime, the collapse of import scrap prices in Turkey has increased pressure on mills’ rebar and wire rod offers. Some producers, however, being more or less sold out, have preferred to keep their official prices high. Others, however, have been forced to drop the offers.
Over the past week, Turkey’s import scrap prices have dropped from an average for HMS I/II (80:20) of $373.5/mt CFR to $342.5/mt CFR, according to the most recent estimations. Shortly afterwards, rebar and wire rod export prices from Turkey have dropped by $20-25/mt to $550-570/mt FOB and $565-575/mt FOB, respectively. Developments in the Turkish market and the sluggishness of demand have weighed on North African mills as well.
In particular, one of the Algerian mills has decreased prices by $16-17/mt over the past two weeks and is currently offering rebar at $539/mt FOB and wire rod at $530/mt FOB, for end-of-May to end-of-June shipments. Another supplier from Algeria, according to sources, which was targeting around $560-565/mt FOB for both products earlier, in the current market conditions prefers to collect bids rather than voice its own offers.
In Egypt, the leading producer is officially offering at $560/mt FOB for rebar for June shipments and at $570/mt FOB for wire rod for May shipments. However, buyers report that discounts of up to $10/mt are possible from other suppliers or for large volumes.
