Square billet price increase in China could cause price rise for rebar in Turkey in the short term

Quotations for square billets from China to be delivered to Turkey customers grew this week. Despite expectations, export prices rose as a result of growing demand on China’s domestic market and quotations rise for rolled steel in the first weeks of January. According to the available information, February quotations for the Turkish market went up by $5-7/t to $250-255/t, CIF. Meanwhile, some market operators forecast quotations of rebar manufactures to overcome $330-335/t, FOB till the end of January given square billet price will continue to grow. At the same time, such level of prices could hardly be achieved when the demand for long products remains moderate on the markets of the Middle East and the Persian Gulf.