TURKEY LONG STEEL EXPORTS: Section 232 sends Turkish prices down
The Turkish long steel export market has remained sluggish because of the uncertainty created by the Section 232 tariffs imposed by the United States, and prices have started to fall, sources said on Thursday March 22.
Turkish steel producers have reduced their rebar export offers to $595-605 per tonne fob on an actual weight basis, while demand for such material was significantly low.
Sources believed that the Section 232 announcement is affecting steel markets all over the world but the tariffs cannot be sustainable, Metal Bulletin was told. The US will impose 25% import tariffs on all steel imports starting from tomorrow. Only material from Canada, Mexico and Australia will be exempt.
“The [Section 232] decision affects steel producers all over the world. The US is trying to defend its domestic market, but such market models do not last for long,” a CIS source said. The ultimate effects would be seen in a few months, he added.
“The Section 232 uncertainty stopped all export long steel sales. [And] there are talks about a possible exemption for Brazil that will hurt the Turkish market further,” a Turkish trading source said.
“We are hearing signals from Asia which are also sending prices downward,” he added.
With the resulting weak demand, Turkish export rebar and wire rod prices have gone down over the past week.
Metal Bulletin’s weekly price assessment for rebar exports out of Turkey was $585-595 per tonne fob on an actual weight basis on March 22, down from last week’s $600-610 per tonne.
The weekly price assessment for wire rod exports out of the country on March 22 was $610-615 per tonne fob, down from the $615-625 per tonne of last week.