The global long products market: last week
November ended not well for the global long products market. Prices continued to fall steadily. The number of actual transactions was insignificant. Many buyers are waiting for further decline. This applies particularly to East Asia and the Middle East. Chinese steelmakers increasingly rely on exports. Due to the weak activity in the domestic market they are looking at external.
However, quotes for rental and raw materials increased slightly. The reason for this was the statement of us President at the G20 summit. He said that duties on Chinese goods will not rise. This refers to 25%. However, a substantial increase in the world is unlikely to contribute.
The rebar in the spot market in China fell. The decrease was 105−110 dollars per ton. Stocks of steel products have been actively exported. Interestingly, Chinese companies were offered favorable terms to foreign clients. This was possible thanks to a deep collapse in prices in the Chinese market. In addition, the RMB exchange rate is quite low.
Iron and steel industry of Turkey was in a state of free fall. The reason for this was the displacement of Asian Chinese metallurgists. The EU suspended purchases of wire rod and rebar. European traders fear that will not invest in import quotas. One small Turkish company is already preparing to suspend its operation. It will happen in January. Perhaps a number of other local companies will follow the same example.
Difficulties faced companies from the CIS. Primarily, this concerns companies that export preset. Their products has already dropped to $ 435−440 per tonne FOB. The reason was the tough competition from Chinese companies. The demand for billet is extremely weak.