The merchant bar prices in southern Europe and Turkey are maintaining their strength in line with the strong raw material and semi-finished costs. The merchant bar prices in Turkey had registered rapid increases in the past months; however, in recent weeks the prices in Turkey have only undergone changes due to fluctuations in the exchange rate. Looking at the local Turkish market, the merchant bar prices, depending on size, thickness and region, are as follows: small NPI-NPU are priced at TRY 1,275-1,315/mt ($979-1,010/mt), 100-120 mm IPE at TRY 1,290-1,300/mt ($991-998/mt), angles at TRY 1,275-1,315/mt ($979-1,010/mt), flat bars and square bars at TRY 1,305-1,325/mt ($1,002-1,018/mt) - all prices are ex-works, on actual weight basis and excluding VAT. The prices also may differ in the sales price levels of traders (who had previously taken position), which are lower than the mills' levels. In these days, when the demand level in the local Turkish market has almost come to a halt, all market players - from traders to end-users - are wondering if any correction in the abovementioned price levels will occur and of what magnitude any such change will be.
The Italian producers are also having difficult times due to weak end-user demand similar to that seen in Turkey. These producers are having great difficulty giving prices due to the continuous rises in scrap prices and raw material costs. Depending on these costs, they may revise their prices as of next week. For now, the base prices for small merchant bars of sizes up to 140 mm are at €410/mt ($649/mt), while size 160 mm and above are at €520/mt ($820/mt).
On the Turkish export market side, it is heard that some sales with big tonnages were concluded to South America and the Gulf markets. It is also heard that a Turkish producer concluded merchant bars of around 15,000 mt to South America. Turkish rolling mills are offering angles at $1,030-1,040/mt, NPI-NPU at $1,025-1,045/mt, 80-100-120 mm IPE at $1,070-1,080/mt, 80-100-120 mm IPE AA at $1,080-1,090/mt, flat bars at $1,030-1,050/mt - all prices are FOB, on actual weight basis and for June shipments. The Turkish producers had been very active in the Persian Gulf in the first three months of 2008; however, they have not been as active there in recent times due to the fact that China has started to enter the Persian Gulf market again in spite of its 15 percent export tax.