gulfdiary 
green   Russian Rebars Mills Set to Rise Prices
    It's reported that Russian steelworks are likely to lift their rebar offer prices for May. The domestic rebar mills are considering increasing domestic prices by 1~1.52% from the previous month.
Industry sources said that the imports have reduced as the market shares dropped to 10% from 21% in last year.
Ukraine's rebar imports in January totaled 77,800 tons, down by 65% compared to the corresponding month of last year.
green   Steel Mills in Egypt Halt Production Due To Electricity Outages
    The Chamber of Metallurgical Industries, part of the Federation of Egyptian Industries has said that steel mills are unable to bear the additional burden of the government's planned rise in energy prices, complaining of already deficient supplies of gas and ongoing electricity outages.
Gamal Al Garhy chairman of the Chamber Metallurgical Industries and of Suez Steel said, “Steel mills are shut down practically one third of the day because of electricity outages, and there is a significant shortfall in the supply of gas.”
In remarks made during a visit to the Suez governorate last week Prime Minister Ibrahim Mehleb announced the government's intention to raise the price of energy for energy-intensive industries that have not seen price increases during the latest period, most notably steel.
Al Garhy said, “The price of gas for steel mills is currently USD 4 per million BTUs, up from USD 1 to USD 2 before the revolution. Electricity prices rose from EGP 0.11 per kilowatt to about EGP 0.46. Suddenly raising energy prices in a haphazard way hurt companies that have loans and financial obligations they need to repay.”
He said, “The steel industry is different from the cement industry, which currently receives its gas at USD 6 per million BTUs, because most of the cement industry's raw materials are local, whereas steel factories import raw materials from abroad at high prices. Since they purchase the materials in dollars, the steel factories also have to contend with continuous price fluctuations. Better supplying companies with gas and electricity regularly and helping them achieve full production capacity should precede any increase in energy prices.” Mohamed Hanafi DG of the Chamber of Metallurgical Industries said that “Factories with furnaces for smelting will be affected the most by rising gas prices especially the plants in Dakhlia, Beshay and Suez and all factories will be affected if prices of electricity are increased. There has been a problem in supplying gas to the factories since the time of the revolution in 2011 up until now and plants have been operating at a production capacity of no more than 60% or 70%. Despite not working at full production capacity, plants also suffer from the over accumulation of their inventories, which have reached 150,000 tonnes.
Hanafi said, “The one Mn housing units project, which the government plans to implement with the Emirati company Arabtec, will not significantly push up demand, as the project is being implemented over 5 years, or approximately 200,000 housing units per year, which only require 600,000 tonnes. This is only equivalent to one month of steel mill production.
green   Saudi Arabian HRC Import Prices Drop
    Saudi Arabia's import prices for hot rolled coils have decreased due to weak demand and high stocks. Recently , the import price for HRC with thickness of 2 mm was at USD 550 per tonne to USD 580 per tonne CFR, falling by USD 10 per tonne from a week ago. Traders said that HRC demand will remain weak as summer holiday. The current HRC prices in domestic market drop by around USD 10 per tonne. Meanwhile, the Import price for Egypt origin HRC with thickness of 1.2 mm and 2.0 mm was at USD 660 per tonne CRF and USD 590 pe rtonne to USD 600 per tonne CFR respectively
green   Erdemir Makes Record Profit of 89% in Q1
    The biggest steel producer in Turkey, Erdemir reported a net profit of TRL 432.4 million in the Q1 an increase of 89% compared to the previous quarter. Behind the unexpected leap is an increase in sales, the devaluation of the lira and decreasing prices of raw materials. The sales income of the company came to TRL 2.93 billion, an increase of 21% from the previous quarter.
Ali Pandır CEO of Erdemir Group said that the company targeted a raise in the export share, which is 10% of all sales to 15%. The company would make an annual investment of USD 300 million in the next 5 years.
Pandır emphasized Erdemir went through a successful Q1 in 2014 despite volatility in exchange rates and uncertainty in elections. We foresee a growth of 7% in 2014 in terms of tonnage. We will sell more than 8 million tonnes of products.
He said that sub contractors are quoting within the context of TANAP. In the TANAP project, Erdemir seems to be the only producer that meets the requirements of pipe production in Turkey. However, we cannot accurately know the exact volume now.
green   Turkish Auto Market Shrinks by 27.6%
    Volatile currency rates and tough market conditions continue to negatively impact the Turkish automotive sector as the latest data shows the market contracted by over 27% in April. According to data announced by the Automotive Distributors Association (ODD), the number of vehicles sold in April totaled 53,305, which marks a 27.6% drop from the same month last year.
For the first four months of the year, the total loss in the sector was 25.5%, as the market remained at 168,577. While the car market diminished from 25% to 42,769 units sold, commercial vehicle sales witnessed an even steeper decline at 36.4%, which meant that 36,461 units were sold in April.
The ODD report said that the remarkable turmoil in the sector stems from the rise in interest rates and foreign exchange rates, as well as tax hikes and macro prudential measures introduced by the banking watchdog, Banking Regulation and Supervision Agency (BDDK). The organization also suggested that a decrease in consumer confidence and a slowdown in economic activity, private sector investments and domestic consumption took a toll during the month. With the aim of raising the domestic savings rate and reducing the nation's dependence on foreign capital to finance consumption, the BDDK, in February, hiked up the price on car loan down payments.
green   Kardemir Raises Domestic Scrap Purchasing Prices
    It's reported that the Turkish steelmaker Kardemir announced to raise the purchasing prices for local DKP grade scraps by TRL 20 per tonne to TRL 835 per tonne drive by rising demand. However, the Turkish largest steelmaker Erdemir cut its buying prices for local DKP grade scraps by TRL 10 per tonne to TRL 845 per tonne due to stronger lira against the US dollar and stable imported scrap prices.
green   Iran Billet Market Witness Downward Trend
    Billet market was slowly downward during last week in Iran but finished the week slightly improved. Price of billet size 150 mm from import market dropped by IRR 200,000 per tonne to IRR 17,700,000 per tonne on truck in Anzali including 6% VAT and custom duty. Domestic production billet size 150 mm was being offered at IRR 17,200,000 per tonne to IRR 17,500,000 per tonne and size 120 mm at IRR 16,300,000 per tonne but finished the week at IRR 16,600,000 per tonne ex works including 6% VAT as reported by IR Steel. Long products market negative sentiment has made billet market quiet. If long products prices improve, billet price may rise by IRR 500,000 per tonne . Billet cargoes at warehouses which belong to cheap purchased cargoes 4 or 5 months ago at IME, are pressuring market sentiment. Market participants do not expect billet price drop from current level in short time. Billet import level has reached less than 1,000 tonnes due to higher domestic production currently.
    This section is a compilation from various company press releases, business dailies &
trade publications