London (Platts)--7Nov2012/1227 pm EST/1727 GMT
Sales of steel reinforcing bar from Turkey to the United Arab Emirates at $610-613/mt CFR Dubai on a theoretical weight basis for part of a December shipment show the real level of demand in the Persian Gulf, despite attempts by mills in Turkey to push up offers on a FOB Turkey basis purely on scrap's increase, market participants said Wednesday. Around 20,000 mt was sold at $610-613/mt CFR on a theoretical weight basis until Tuesday, or at circa $600/mt FOB Aliaga on an actual weight basis. However, one mill that regularly sells Handysize cargoes to Dubai most recently offered at $620/mt CFR Dubai late last week, before delaying December shipment sales as scrap continued to shoot up, according to Turkish export representatives and Dubai importers. Local producer Emirates Steel Industries has yet to officially announce a December rebar production price increase, but given its current sales level is well below import prices, stockists argued that a gain of around $25/mt is possible. Still, this would limit bookings from Turkey above $615/mt CFR for December shipments, market participants said. In spite of the above sales, mills on Wednesday pushed offers up yet further as US recyclers refused to counter selling within a $200/mt differential of FOB Turkey rebar offers. New mill quotations were given at $615-620/mt FOB Turkish ports, even though sales at $610/mt FOB were not flowing. The Platts daily assessment gained $2.50/mt to $607.50/mt FOB Turkish ports on Wednesday after the latest offer increase. --Ciaran Roe, ciaran_roe@platts.com --Edited by James Leech, james_leech@platts.com