This week, Ukrainian
rebar and
wire rod prices remained almost unchanged compared to last week. The export offers for
rebar are at $420-425/mt while
wire rod offers are at $440-450/mt levels. There is not much demand available in the market at these levels. However, certain customers in
Middle East are trying to bring
CIS origin material as an alternative since the Turkish prices indicated a sharper increase. The Euro/US Dollar exchange rate, which exceeded 1.23 levels, may create an advantageous position for Ukrainian origin
rebar in late May/early June shipments in Algerian market.
Prices in
Israel market retained their previous levels.
Rebar prices in local market are at around $525/mt. It is heard that producers' 45-days productions are full. Imported
rebar and
wire rod market are also calm this week. The recent
rebar bookings concluded from
Turkey were at $500-505/mt CFR while
wire rod bookings from
Ukraine were at $480-488/mt CFR.
Israel market did not indicate an upturn despite expectations, mainly due to the holiday at the beginning of the week. If
rebar offers from
Turkey will not show a slowdown,
Israel local market may continue current movement.
UAE market was calm this week after the purchases that were concluded last week. Turkish mills' new
rebar offers in the
UAE market are at $510-520/mt CFR on theoretical weight basis. However, importers are reluctant for these levels. Domestic price level of
rebar in
UAE was at AED 2,000-2,100/ton CFR on theoretical weight basis last week. However, the rebars were traded at AED 2,000-2,050/mt on theoretical weight basis at last week and this week. The
construction companies do not make higher tonnage purchasing, just meeting their urgent requirements as they feel hesitant because of price increases. However, the fact is that
construction companies have to overtake the contracts on hand and ultimately they will purchase the required material.
Price level of AENOR-certificated rebars in the local Spanish market rose Euro 5-10/mt to Euro 520-525/mt delivered to warehouse on actual weight basis. The imported
rebar cargoes, which were received earlier, started to enter the Spanish market. Each
rebar cargo was higher than the previous cargo price. This situation reflects the price increase in Spanish market. However, the fact is that
Spain reacts late to the global price increases than the other European countries. One month before, the prices indicated an increase in
Middle East,
CIS and
Europe, but remained stable in
Spain. However, in the last two weeks, the prices started to show a stable trend in other areas, but they indicated an upturn in
Spain. This week, Turkish origin rebars has been offered to
Spain at $520-525/mt CFR and
wire rods from $515-520/mt CFR. It is heard that there are bookings concluded at $520/mt CFR in
Portugal for early July shipment. If the Euro/US Dollar exchange rate continues current situation, there might be Turkish origin
rebar and
wire rod bookings in
Spain and
Portugal.
Chinese origin
wire rod has a price advantage against Brazilian and Turkish competitors in
Europe. However, the necessity to buy high tonnage for reasonable
freight costs and minimum 90-days lead times were the bottlenecks for the Chinese origin
wire rods. It seems that
China's
wire rod exports to
Europe may face with another bottleneck. European importers seem not to show any interest to Chinese material for August deliveries due holidays that will start in August.
Markets were flat this week. Especially Turkish producers' efforts to pull the Black Sea
scrap down and the importers and stockists' hesitation led almost all markets to wait and see strategies. In addition, there are various developments beyond the Ocean. The long product prices are increasing in the US and the demand is strong. Furthermore, the demand for local
scrap is strong and prices indicate an upward trend. Market players are trying to create a strategy by working out the different movements in old and new world.