Merchant bar prices have this week also been maintaining their strong situation in southern Europe. Although billet prices have softened slightly, they continue to remain at high levels, and producers have been reflecting the strong semi-finished prices on to the finished products. It is observed that buyers have been experiencing difficulties in purchasing at the high price levels.
The merchant bar prices for sizes of 140 mm and below in the local Turkish market are in the range of TRY 1,645-1,760/mt ($1,355-1,450/mt) excluding VAT. It is heard that some traders with previously-taken positions have been offering at lower price levels.
Looking at the Turkish merchant bar export market, it is observed that the sluggish trend has been continuing. Due to the downward price trend in the local Chinese market, the Chinese producers have this week turned their attention to the export market, in spite of the 15 percent export duty. With the Chinese material being offered to the Middle East, the Turkish producers have been facing great difficulties in exporting merchant bars to this region. Thanks to this situation and the sluggishness in the overall European merchant bar market, the Turkish producers' merchant bar export offers have remained unchanged this week. The Turkish producers are offering angles at $1,380-1,400/mt FOB on actual weight basis for July-August shipments. In addition, flat bars are being offered by the Turkish producers at $1,390-1,410/mt FOB, 80-100-120 mm IPE is being offered at $1,440-1,450/mt FOB, IPN-UPN are being offered at $1,410-1,430/mt FOB and 80-100-120 mm IPE AA is being offered at $1,450-1,460/mt FOB - all on actual weight basis and also for July-August shipments.
No change has been observed in base prices this week in the Spanish domestic market. Stock levels in this country have been maintaining their high levels due to the slow demand. Surprisingly, the Spanish producers have not been reducing their offer levels despite the abovementioned stock and demand factors. Looking at imports, Spanish buyers think that the Turkish offers are considerably high. In this situation, only IPE exports from Turkey to Spain seem possible for now.