Based on the increase in scrap, the expectation of large-scale construction works in Turkey, and the hopes for the recovery of the Chinese economy, the expectation of a rise in the global long-product market continues.
Although all the expectations cause an optimistic mood in the steel market, it is considered possible that there will be difficulties that will slow down the process. In the general view, market representatives do not expect a downward turn, but growth in the steel markets will be very slow in the near future.
Turkish steelworkers stand with the people
Turkey seems to be the most promising country in the market balance. Turkish Metallurgy companies, which will take part in a significant part of the great need, have promised to avoid unreasonable price increases and to be fair. The second half of the meeting, which was negotiated by the Ministry of Commerce and sector representatives in the past days, will take place tomorrow. It has been discussed that a total of 5m/t steel products will be used for new housing needs. Approximately 3.5-3.7 m/t of this is calculated as rebar, while the remaining portion will be flat products and products such as wire rod and steel mesh. Although there is an increase in the spot market in the domestic market, the decisions that will come out of the meeting tomorrow will be more decisive. While the billet and scrap needs of Turkish producers continue to increase appetite in the global market, it seems likely that the prices of raw materials and semi-finished products will be affected, albeit slightly.
In China, the situation is still unclear
The situation in China remains uncertain. There will be two more decisive sessions on this. One of them is the National People's Congress (NPC) and the other is the National Committee of the Chinese People's Political Consultative Council (CPPCC).
They aim to give a new impetus to economic growth. While the government has made a moderate forecast for this year, the National Development and Reform Commission (NDRC) has issued statements that speculation is unacceptable.
In addition, it foresees an increase in rental prices for the months of March-April in China. In particular, it is thought to be increasing due to the high cost of iron ore, scrap metal, and coking coal. From late February - early March, a number of companies from China, Vietnam, and Taiwan reported increases in their selling prices.
Western countries were also able to make more comfortable decisions thanks to low energy prices. European metallurgists are able to gradually increase the increase in offers from their customers slowly.
There is a shortage of supply in the Russian market
In the past two weeks, from metal traders in Moscow; Prices of rebar, hot rolled, and cold rolled steel increased by 3-5 thousand rubles per ton. It reached the highest levels since the end of May - the beginning of June 2022.
They are experiencing shortages of steel products due to low stock levels and limited supplies from producers. There is a tightness due to the optimistic mood in the steel markets, the need arising in the domestic market, and the incoming export demands. Taking into account the need arising in Turkey, the Russian steel market continues to take new steps every day to strengthen its industry.
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