Algerian market has been the mainstay of Southern European steel mills during the economic downturn. However over the last 1 month this cover has been taken away owing to cement shortage in Algeria leading to poor consumption of inventory.
Ramadan on the anvil mills in Italy and Spain have gone in top gear to woo buyers by offering them enticing discounts. It has culminated in evoking response from the buyers who want to take the bait in anticipation of possible bottom out after Ramadan.
Current offer levels of EUR 480 per tonne to EUR 485 per tonne FOB discounted by EUR 5 per tonne depending on the volume and interest of booking some transactions have been reported.
Reportedly small size 5000 tonne to 7000 tonnes HRC parcel has been booked at USD 620 per tonne. However this cannot be the trend as ever since offers have plummeted further with booking of 20,000 tonnes reported at USD 580 per tonne CNF Abu Dhabi. Rebar from Turkey is currently being offered at USD 620 per tonne to USD 625 per tonne CNF with no bookings.
Even though the Japanese and Korean mills have lost out in price game it is reported that a major Japanese mill has offered plates for as low as USD 620 per tonne CNF Dubai, matching Chinese levels, sending ripples in the market.
Euro/USD exchange rate has catalyzed as the revival of the local currency might just be round the corner making export offers dearer.
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Source - Steel Price MEA
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