Platts – Turkish steel mills have increased their rebar offer pricing based on a slight increase in ferrous scrap, sources said Wednesday.
No deals have been seen at the new price level and sources were skeptical that any would be achieved.
A Turkish trader said offers from mills for export have increased USD5-USD10/mt from previous base offers of USD435-USD440/mt FOB actual weight.
A merchant for one of the mills agreed, saying that they had increased prices USD5/mt and that many other mills had pushed upwards the same amount from the previous range of USD430-USD440/mt.
He cautioned that their own pricing was not a good reference point for the market, as they were in a position to be able to wait out what he saw as a temporary upturn for scrap.
“There hasn’t been any new trades at this level,” he said. “If demand in the local market increases then it might be supported.”
A UAE trader said that Dubai purchasers were looking for USD435/mt CFR theoretical weight (USD428/mt FOB actual) and found it unlikely anyone would purchase for less than this level.
“Our pricing is not related to the scrap price, it is because of the local market,” he said. “Nobody wants Turkish steel because the last couple of months have yielded these expensive cargoes.”
Emirates Steel announced a reduction in the local UAE market and has indicated it will reduce prices again later this month.
Demand for Turkish material is weak in other export locations and sources agreed that pressure from the UAE would have a large impact on rebar pricing.
Turkish export rebar was stable on day Wednesday at USD433 per ton FOB actual weight.