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.