Sluggish rebar and billet market takes toll of steel scrap purchase
Ironically winter seems to be freezing the scrap transactions this year. Traditionally winter has been a period of brisk scrap business followed by improved price levels owing to shortage and inventory buildup by Turkish mills before the winter holidays in Europe, USA and Russia.
However this year tide has ebbed prematurely with scrap levels stagnating around USD 397-400 per tonne, CFR, Turkey levels for over a week. Likewise offers at hiking the levels of A3 scrap from Russian and Eastern European countries have turned out to be cropper with no significant interest at USD 385-390 per tonne, CFR Turkey.
Main reason for this uncanny pattern has been dipping sentiments in long market with rebar and billet levels losing about USD 5-7 per per tonne during the last 10 days.
All this is happening amidst low inventory levels with Turkish mills and January booking still remaining unfulfilled. Amidst slow booking from UAE buyers as plenty of domestic rebar is available rebar levels have been booked at USD 586-587 per tonne, theoretical weight, recently booked. The gap between scrap and billet being squeezed and the export levels of rebar coming down mills are opting to buy billet from CIS sources rather than go for scrap purchase.
Despite slow demand for scrap some improvement is unavoidable during the next fortnight with shortage of scrap as well as billets owing to freezing of Black Sea ports during winter leading to scuttled supply.
Source – Strategic Research Institute
(www.steelguru.com)
Ironically winter seems to be freezing the scrap transactions this year. Traditionally winter has been a period of brisk scrap business followed by improved price levels owing to shortage and inventory buildup by Turkish mills before the winter holidays in Europe, USA and Russia.
However this year tide has ebbed prematurely with scrap levels stagnating around USD 397-400 per tonne, CFR, Turkey levels for over a week. Likewise offers at hiking the levels of A3 scrap from Russian and Eastern European countries have turned out to be cropper with no significant interest at USD 385-390 per tonne, CFR Turkey.
Main reason for this uncanny pattern has been dipping sentiments in long market with rebar and billet levels losing about USD 5-7 per per tonne during the last 10 days.
All this is happening amidst low inventory levels with Turkish mills and January booking still remaining unfulfilled. Amidst slow booking from UAE buyers as plenty of domestic rebar is available rebar levels have been booked at USD 586-587 per tonne, theoretical weight, recently booked. The gap between scrap and billet being squeezed and the export levels of rebar coming down mills are opting to buy billet from CIS sources rather than go for scrap purchase.
Despite slow demand for scrap some improvement is unavoidable during the next fortnight with shortage of scrap as well as billets owing to freezing of Black Sea ports during winter leading to scuttled supply.
Source – Strategic Research Institute
(www.steelguru.com)
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