The long-standing lack of
merchant bar in the Turkish domestic market continued throughout the past week. Although the rolling mills have angles and flat bars in hand, shortages have continued in relation to NPU and NPI. The fact that the export-oriented rolling mills are directing their U and I profile productions towards export, has caused domestic market-oriented rolling mills to produce mostly U and I profiles. During the week, demand remained unchanged, material shortages continued and the TRY/US Dollar exchange rate saw a decline. Nevertheless, domestic prices saw an increase due to the lack of material diversity in the domestic market and also due to the high
billet prices. This week's angle prices are at TRY 835-895/mt ($590-630/mt), while flat bar prices are at TRY 845-905/mt ($595-640/mt).
On the export market front, the increase in
billet prices has also caused
merchant bar prices to increase. The price rise has taken place since domestic
billet prices went up to $500-510/mt and Ukrainian origin
billet prices rose to $450-460/mt FOB Black Sea. Angle prices, which were at $565/mt FOB in December, rose to $590-595/mt FOB this week. In addition, flat bar prices also increased to $600-605/mt FOB. What is the approach for these offers? Last week, a booking was concluded at $585/mt CFR to
Israel. However, the Israeli market has also approached offers with some caution this week. Of course, the Chinese must be taken into consideration in this situation. Although there was a slight increase in Chinese offers this week, they are lower than the other offers. For example, Chinese offers for flat bar are at $485/mt FOB. On the other hand, the high
freight rate for Chinese material and the late shipments are still the main disadvantages.
In
Europe, extras have increased in
Spain and
Italy. While market prices are increasing slowly in
Italy and
Spain, the Greek market is currently calm. Turkish
merchant bar offers for
Spain are at Euro 510-520/mt, depending on sizes. In
Spain, offers for IPE materials from
Turkey are at Euro 600/mt CFR and from South
Korea are at Euro 660/mt CFR. The demand is strong in the Spanish market. In general, European domestic prices have increased in January. However,
merchant bar prices have decreased by Euro 10-20 in
Greece. Angle prices in the Greek local market are at Euro 500-510/mt, flat bar prices for 6-15 mm are at Euro 510-520/mt, while square bars are at Euro 470-480/mt. At the present time,
Greece is acting with greater caution to offers for export.
Although the markets have approached offers with caution this week, customers look likely to pick up their purchasing activities in the coming days.