The demand levels in southern Europe's merchant bar market have been maintaining their sluggishness over the past week. The softening in scrap prices has so far not been reflected in the prices of merchant bar market players in the region. No equivalent decrease to the one seen in scrap has been seen in southern Europe's merchant bar market prices in the past week.
In the past week, 140 mm and below sized merchant bars prices have softened compared to the previous week. Thus, 140 mm and below sized merchant bars have been offered at the price range of TRY 1,610-1,710/mt ($1,354-1,439/mt) ex-works excluding VAT. It is heard that traders with previously taken positions have been offering at lower price levels.
The softening trend in the local Turkish merchant bar market has also been seen in the Turkish merchant bar export market. Meanwhile, Turkish rolling mills have in the past week been offering angles for export at $1,350-1,360/mt FOB on actual weight basis for August shipments. In addition, flat bars have been offered at $1,360-1,370/mt FOB, 80-100-120 mm IPE has been offered at $1,420-1,430/mt FOB, IPN-UPN have been offered at $1,360-1,370/mt FOB and 80-100-120 mm IPE AA has been offered at $1,430-1,440/mt FOB - all on actual weight basis and also for August shipments.
Chinese producers' merchant bars export offers, which have constituted the main factor behind the slackening of demand for Turkish producers' material, have in the past week been at $1,030-1,050/mt FOB on a theoretical weight basis including the export tax, and at $1,050-1,100/mt FOB for flat bars and at $1,050-1,150/mt FOB for H-profiles with the same terms.
However, a positive development for Turkish merchant bar producers has been the softening of import billet prices in the past week, with CIS origin billets being mentioned at $1,120/mt FOB. It is expected that the price level of the item in question may decrease further. On the other hand, towards the last days of the past week Spanish origin billets were heard to have been offered to Turkey at the price range of $1,150-1,175/mt CFR Turkey. These developments have opened the possibility of alternative sources of billet for Turkish merchant bars producers as opposed to Indian billet.
Looking at the Spanish and Italian domestic markets, in the past week no important change in the price levels has been observed in these markets either. It is expected that the new price levels in these markets will be set after the holiday month of August. Small and medium sized merchant bars have been offered in the Italian domestic market at €860-890/mt ($1,364-1,412/mt) ex-works excluding VAT, while the same items have been offered at €890-910/mt ($1,412-1,444/mt) ex-works excluding VAT in the Spanish domestic market.