UK long steel market waits for Brexit clarification

Monday, 14 October 2019 15:16:28 (GMT+3)   |   Istanbul

Business activity in the British long steel market remains subdued, partly as market players await to see some clarification on the Brexit process, which is expected at the end of the current month.

Domestic rebar prices in the United Kingdom (UK) are standing at GBP 420-425/mt ($529-534/mt) CPT, while domestic wire rod prices are at GBP 440-445/mt ($554-560/mt) CPT. In addition, local merchant bar prices in the UK are ranging within GBP 465-470/mt ($585-591/mt) CPT. Market sources indicate that the price range for import rebar in the UK are at GBP 400-410/mt ($504-516/mt) CPT, for import wire rod at GBP 425-430/mt ($535-541/mt) CPT and for import merchant bar at GBP 440-450/mt ($554-566/mt) CPT.

While the demand for long products in the UK remains largely weak, buyers’ interest in imports is minimal. In addition, it is still unclear how the import regulation system will be handled if the Brexit happens. “It’s highly likely we will still operate with the same tariffs on steel for a while,” one of the sources said. Therefore, the offers from Turkey - as a potential seller - may be evaluated when the sky is clearer. As of now Turkey has used up its rebar quota to the European Union (EU). Currently ex-Turkey rebar offers are ranging at $400-410/mt FOB, which indicatively corresponds to $435-450/mt CFR UK .One of the sources indicate that “The sharp appreciation of the GBP against the Euro and the dollar is further depressing import prices from EU and non-EU sources which causes buyers to delay decision making.”

GBP 1=$1.25

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