Base prices for merchant bar in Europe, especially in Italy, have increased considerably since the 65 percent iron ore price rise was announced three weeks ago. Base prices in Italy, which were at €380/mt last week, have increased this week by €50/mt to €430/mt. Overall merchant bar market prices have increased accordingly. Although demand is still not at high levels across Europe in general, traders have been concluding sales in their local markets at satisfactory levels for themselves. Southern European countries, such as Italy and Spain, have been concluding significant quantities of sales, particularly to the North African market, at good price levels.
Merchant bar prices in the local Italian market, depending on size, thickness and regions, have been at the following levels: small size NPI-NPU at €675-685/mt, 80-100-120 mm IPE at €670-690/mt, angles at €690-695/mt, flat bars at €680-695/mt and squares at €655-700/mt - all prices are ex-works, excluding VAT. The prices may differ depending on the sales price levels of traders (who had previously taken position) which are lower than the mills' levels.
Looking at the current Turkish export offers, it is observed that the producers are unwilling to make fixed offers. It seems that rolling mills are finding it difficult to decide on price levels as both domestic and international billet prices are increasing so rapidly. The latest billet offers from Ukraine to Turkey have been at $750-755/mt FOB as of Wednesday this week; meanwhile, in the same period billet prices have been at $790-800/mt ex-works, excluding VAT, in the local Turkish market. The uncertainty as regards merchant bar prices may continue until the weekend if the billet producers decline to announce definite prices.