June 2009 | Steel Raw Materials
Turkish steelmakers under cost pressure: Scrap Highlights
China picks up purchasing as market confidence grows
We understand that seven cargos were booked last week of which five were from US suppliers. As we mentioned last week prompt delivery is a priority and mills are also making enquiries for European material. Turkish steelmakers are still feeling the pressure of slack demand from the construction sector, but they have been forced to increase export prices for merchant bar.
Steel long product purchases are being made from North Africa and the Persian Gulf, but volumes are small as a recovery in demand from the construction sector is still uncertain. Booked merchant bar exports have moved up by $20/tonne from $490-500 to settle at $500-510/tonne fob Turkish port within two weeks. We think prices will fall back as there are no signs that this is a demand-driven price uptick and suppliers will become more competitive if buyers do not accept the higher prices.
The higher scrap import...
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