Demand for imported billets decreased, and prices decreased
According to SteelRadar's news, prices in the Turkish steel markets have weakened in the first half of the Q2. Despite expectations of an intense production period for restoration work after the earthquake disaster in Turkey, the instability in rebar prices occurred due to slow progress in the work and the non-entry of products into the ground, causing factories to slow down their scrap purchases and decreasing the prices of imported scrap. The weaker-than-expected demand for billets and weak demand for imported billets caused a decrease in prices. After the earthquake disaster, billet offers increased up to $650/tonne at the end of February. In the second half of March, however, due to weak demand, offers decreased to the range of $625-$630, and imported billets, which entered the second quarter of the year at $620 on April 3, decreased to $610 by April 13, 2023.
How did the outlook for billet prices progress in global markets?
Due to low demand, there is no increase in offers for steel products. The construction sector has been experiencing significant problems since 2008 due to record interest rate increases in Western countries. The global threat of a financial and economic crisis that negatively affects investment activity is causing investors and the sector to proceed with caution. Expectations for the Chinese markets were very optimistic at the beginning of 2023, but the forecasts did not materialize in the global market. When the visible demand for construction materials decreased short of expectations, prices of rebar and billet did not happen as expected. However, according to foreign sources and expert market officials who spoke to SteelRadar, long-term predictions for China continue to be optimistic. In addition, the expected restoration work in Turkey this year is creating hope that it will strengthen billet prices in the Russian market.
The wire rod prices decreased by $25 in the Aegean Region today
Manufacturers have entered the second quarter of the year with an uncertain outlook for wire rod prices. A producer from the Aegean Region announced a price reduction of $25 on their list prices today, offering 5.5 16 MM 20 Mnb 4 for $960+VAT and 5.5 16 MM QST 36-3/CQ-15 for $940+VAT.
On April 7th, a producer from the Marmara Region quoted a price of $750 for flat wire rod, which dropped to $720 on April 10th. While there were no changes in dollar-based prices this week, increases were seen in Turkish Lira-based prices.
The prices of KARDEMİR were gradually lowered.
In March, KARDEMİR Karabük listed the prices of Ø 6-7-8-9-10-12-....28 mm (SAE 1008-1010) at $750, but at the beginning of April, they decreased to $725. The prices were flat for a week, but with the new price list released on April 12, 2023, they decreased to $704, a decrease of -2.57% or $349.75.
Click here for the latest assessment of of scrap metal prices.
Click here for the latest assessment of rebar prices.
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