NEW YORK Strengthening scrap prices have led to somewhat higher finished steel prices in Turkey and improved sentiment, even though global demand for long steel products was flat last month.
"Ferrous scrap prices have shown some resilience, boosting sentiment in the market," the Istanbul-based International Rebar Exporters and Producers Association (Irepas) said. "As Turkish demand for ferrous scrap has improved significantly towards the end of June and in early July, scrap prices have been driven upwards. A certain increase has also been observed in finished steel product prices, though remaining behind expectations as per the seasonal trend."
The association said the global long steel market has likely reached a bottom due to the boost in raw material costs.
But global supply tightening due to summer closure periods of mills in the European Union and concerns regarding tonnage shortages in the post-Ramadan Middle East has helped improve sentiment. "Lead times from order to execution are extended and expected to continue the same way for July and August," Irepas said.
U.S. demand for long products is stronger than in many other countries, Irepas said, even though the U.S. market has seen its own sluggishness. U.S. rebar prices havent yet increased, but many market participants predict higher prices next month (amm.com, July 8).
"The U.S. market seems to be the only market showing some positive signs for long products at the moment," Irepas said.