Looking at the Turkish domestic and export merchant bar markets in the second week of August (33rd week of the year), it is observed that price levels have been falling continuously and that the disturbance of demand is still in evidence. There are various expectations for when these declining movements in the Turkish domestic and export merchant bar markets will come to a halt. According to the general expectation among Turkish producers and traders, the downward movements in question may stop in September. There are two main reasons behind this expectation: first, the Turkish producers may start to purchase scrap and the possible resulting increase in raw material prices may be reflected in the prices of finished steel products; second, Europe will have returned from its holidays by the start of the month in question.
Merchant bar prices in the local Turkish market are continuing their downtrend week after week. A noteworthy development last week was that the price levels offered in mid-week dropped down further towards the end of the week. Thus, producers have been experiencing difficulties in determining definite price levels. The price levels of TRY 1,290-1,460/mt ex-works excluding VAT mentioned early last week had decreased by the end of the week to a range of TRY 1,170-1,460/mt. The decreases in question have mostly been registered in angles, flats, squares and IPN-UPNs.
Turkish rolling mills' export offers for merchant bars continue to soften week by week. Last week's export offers decreased by an average of $70/mt compared to the previous week (32nd week). The Turkish merchant bar producers, who have been experiencing difficulties in selling material due to the low priced offers from China to the Middle East, have been maintaining their search for alternative markets. In the last week, Turkish rolling mills were offering angles for export at $1,140-1,160/mt FOB on actual weight basis for August/September shipments. In addition, flat bars were being offered at $1,150-1,170/mt FOB, 80-100-120 mm IPE was being offered at $1,240-1,260/mt FOB, IPN-UPN were being offered at $1,150-1,170/mt FOB and 80-100-120 mm IPE AA was being offered at $1,250-1,270/mt FOB - all on actual weight basis and also for August/September shipments. Offers below the abovementioned levels were also reported.
Moving to the Romanian domestic merchant bar market, the long-rumored price increase for merchant bars in this market did not materialize last week either. The markets with the potential to export merchant bars to this country have been awaiting the price increase predicted for this market. The merchant bar prices in the local Romanian market stood last week in a range of €830-850/mt ($1,238-1,268/mt) ex-works, excluding VAT, on actual weight basis with 30-day deferred payment.
In the Bulgarian domestic market, it is reported that prices are registering a softening trend. Last week, the prices of merchant bars of 140 mm and below sizes in the local Bulgarian market were at €800-810/mt ($1,178-1,193/mt) ex-works on actual weight basis for 30-day deferred payment excluding VAT.
Looking towards the UK, it was observed that the producer price levels remained unchanged last week, whereas the demand level in this country was still low. Last week, offers for merchant bars in this market were in a price range of ₤720-740/mt ($1,061-1,090/mt) ex-works, on actual weight basis, excluding VAT, with 60-day deferred payment.
Meanwhile, it is heard that the merchant bar prices in the local Lebanese market have been on a softening trend. In the last week, the price level of 140 mm and below size merchant bars in this market was in the range of $1,480-1,500/mt ex-warehouse on actual weight basis and for cash payment, including 10 percent VAT.