End-user demand in southern Europe has been maintaining its calm trend. Pointing to the slow construction sector in Italy and Spain, the producers and trading firms report that the end-users and traders are only purchasing the amounts they require and are abstaining from buying large tonnages. The overall European merchant bar prices have been showing upward momentum for quite some time now. This week, within the space of a couple of days, merchant bar base prices in Europe increased by €50-60/mt. It could be said that the main reasons behind this price rise are the increase in global billet prices and the high price levels in North Africa, South America and the Middle East, which have been met by acceptance.
The price levels of merchant bars in the local Spanish market are as follows: small and medium angles are at €855-870/mt, squares are at €830/mt and small and medium IPN-UPN are at €855/mt - all prices are ex-works, on actual weight basis and excluding VAT.
In the local Turkish market it is observed that the construction sector is characterized by a certain degree of slowness. However, due to the billet price levels of $1,130-1,160/mt, the merchant bar prices have been increasing in this market. As of this week, the merchant bar prices in the local Turkish market are at the following levels: small IPN-UPN are priced at TRY 1,540-1,560/mt ($1,235-1,252/mt), 100-120 mm IPE are at TRY 1,580-1,610/mt ($1,268-1,292/mt), angles are at TRY 1,520-1,550/mt ($1,219-1,243/mt) and flat bars and square bars are at TRY 1,530-1,570/mt ($1,227-1,259/mt) - all prices are ex-works, on actual weight basis and excluding VAT. Another reason behind this upward movement in the local Turkish market is the high export price levels. The Turkish rolling mills are offering merchant bars for export at the following price levels: angles at $1,220-1,230/mt, IPN-UPN at $1,230-1,240/mt, 80-100-120 mm IPE at $1,280-1,290/mt, 80-100-120 mm IPE AA at $1,290-1,300/mt and flat bars at $1,230-1,250/mt - all are on actual weight basis, for July shipment and FOB.
End-user demand in the local Bulgarian market is observed to be more lively compared to the markets in other southern European countries. Merchant bar prices in the local Bulgarian market are as follows: small and medium sized flat bars and angles are at €800-815/mt, medium and large sized IPEs are at €850-890/mt and 200-550 mm H profiles are at €850-917/mt - all prices are ex-works.
In the upcoming days it will be interesting to see in what direction merchant bar prices will move, especially given the strong billet price levels.