Tel : 0086-0371-86172891
Tel : 0086-0371-86172891
Since November 19th, the Yemeni Housai armed forces have frequently attacked commercial ships associated with Israel in the Red Sea and nearby waters, coupled with increasingly frequent Somali piracy activities, which has raised market concerns about the safety of the Suez Canal Red Sea route. On December 18, a coiled material transport ship from South Korea to Türkiye was hijacked off the coast of Yemen JAH370W steel.
The Ministry of Transport of Türkiye has raised the security level of international ship and port facilities security (ISPS) in some areas to the highest level 3, mainly for commercial ships sailing in the Gulf of Aden, close to Yemeni and Somali ports, and flying the flag of Türkiye. The insurance trading agency JWC has expanded the high-risk area of the Red Sea from 15 degrees north latitude to 18 degrees north latitude. As of December 21st, the ocean freight insurance rate (WRS) for navigation in the Red Sea has increased from 0.07% in early December to around 0.5% -0.7%.
Considering the aforementioned risks and costs, some shipping companies have ordered their cargo ships to avoid this route and instead detour around the Cape of Good Hope in southwestern Africa. The Suez Canal is the shortest sea route between Europe and Asia, and the route will increase by 10-14 days after detouring. Moreover, the main port infrastructure in South Africa is generally backward, with low circulation efficiency, which leads to increased shipping costs, longer shipping days, and delayed delivery times JAH370W steel.
At present, there is a strong wait-and-see atmosphere among Asian steel suppliers, and the seller's quotation for Türkiye has not been heard. With the price advantage, Asia has become the largest plate supplier in Türkiye this year. According to the data of Türkiye Institute of Statistics (TUIK), South Korea became the largest cold coil import source country of Türkiye from January to September, with an export volume of 265000 tons, more than doubling year on year; This country is also one of the largest hot coil import sources of Türkiye, with the export volume of 448500 tons in the same period, about double the year-on-year growth. Due to the reduction of import resources, the domestic trade price of Türkiye's hot rolls has exceeded 720 dollars/ton EXW, which may rise to 750 dollars/ton EXW in January next year JAH370W steel.
In terms of export, the demand for rebar export market in Türkiye has slowed down due to traffic jam. In order to boost sales, some large rebar producers in Türkiye's Marmara region significantly reduced their quotations. On Wednesday, we estimated that the mainstream export price of rebar in Türkiye was 600 US dollars/ton FOB.
