Looking at the situation in the European merchant bar market last week (42nd week of 2008), it is seen that the overall situation has remained the same. Decreasing raw material and semis prices have been having an impact on finished steel prices, while buyers have been continuing to delay their purchases. Meanwhile, firms are facing financial problems and are having difficulties in obtaining payments.
Over the last week, domestic and import billet prices dominated Turkey's domestic and export merchant bar markets. Both the billet price announcement issued by a domestic Turkish mill at the level of $452/mt + VAT and the drop in ex-CIS billet prices from $410-420/mt FOB to $350-370/mt FOB over the course of the week have caused new price drops to be seen. Although offer levels continue to soften, demand retains the same sluggishness.
Last week, merchant bar prices for NPI-NPU profiles and angles stood at 910/mt ($583-609/mt), while flat and square bars stood at TRY 880-920/mt ($588-615/mt), showing differences according to size, thickness and location. However, it should be taken into consideration that some mills can conclude deals at below these levels as they sell off inventories in stock. Meanwhile, the $/TRY exchange rate, which changes frequently nowadays, continues to influence prices.
Last week, a variety of prices was heard in Turkey's export merchant bar market. In the middle of the week, Turkish mills' offers to the export markets, which showed differences based on levels of stocks and new production, stood at $650-670/mt FOB for angles, for NPI and NPU they stood at $670-690/mt FOB, for 80-100-120 mm IPE were $720-740/mt FOB, 80-100-120 IPE AA stood at $740-760/mt FOB, while flat bars stood at $660-680/mt FOB. The prices in question are on actual weight basis and for October/November shipments.
On the other hand, demand difficulties have continued to be seen in the Italian and Spanish markets. In Spain, prices maintained the same levels as in the previous week, while in Italy's domestic merchant bar market mills' offers were heard at levels of €650-680/mt ($878-918/mt), excluding VAT, delivered to customer, on actual weight basis.
Prices in UK domestic market have shown further decreases in the past week, dropping by £30-40/mt ($53-70/mt) compared to the previous week. During last week, stockists' offers for merchant bars at and below the size of 140 mm were standing in the range of £550-560/mt ($962-980/mt) delivered to customer.
Looking at the Middle East, it is seen that prices have been continuing to soften, with various prices being offered; however, buyers are still holding back from purchases. In the UAE domestic market, offers given for small and medium sized merchant bars are at levels of AED 3,000-3,500/mt ($817-953/mt) excluding VAT, on theoretical weight basis.
In addition, the news coming from Syria is that merchant bar offers are maintain their sliding trend in the domestic market. In the 42nd week, import merchant bar prices were standing at levels of $760-800/mt ex-warehouse for deferred payments on a weekly basis. Meanwhile, domestic production merchant bar prices are at $760-780/mt under the same conditions of payment.
$1 = TRY 1.49228
$1 = €0.741661
$1 = £0.572386
$1 = AED 3.67260