Looking at the merchant bar market in Europe during the past week, the most noteworthy factor of influence has been the continuing downward trend in raw material and billet prices. As a result, the question in everybody's mind is: when will the current decline in prices come to a halt?
The disturbance in Turkish merchant bar prices is continuing both in the local and in the export markets. Although the offers given are being softened day by day, no increase in demand activity, particularly in the foreign markets, is being observed.
With regard to the Turkish domestic merchant bar market, it was again observed during the past week that producers were faced with difficulties in determining price levels. Offers at different price levels were to be found within the same regions. Also, the price gap between the various regions expanded again. In the last week, merchant bars in the Turkish domestic market were offered at TRY 1,300-1,460/mt ($1,100-1,235/mt) ex-works, excluding VAT.
The Turkish merchant bar producers' offers for the export markets have continued to deteriorate just like the offers for the domestic market. In the last week, the Turkish merchant bar producers were offering angles for export at $1,210-1,230/mt FOB on actual weight basis for late August/early September shipments. In addition, flat bars were being offered at $1,220-1,240/mt FOB, 80-100-120 mm IPE was being offered at $1,270-1,290/mt FOB, IPN-UPN were being offered at $1,220-1,240/mt FOB and 80-100-120 mm IPE AA was being offered at $1,280-1,300/mt FOB - all on actual weight basis and also for late August/early September shipments. It was also heard that there were offers with lower price levels compared to the abovementioned. Since Chinese origin material is still being offered at low price levels to the Middle East, the Turkish merchant bar producers have continued to face difficulties in this region.
It is heard that in the past week traders in the local Dubai market were offering small and medium sized merchant bars, of 140 mm and below sizes, at AED 4,600-5,000/mt ($1,252-1,361/mt) delivered to customer.
SteelOrbis has been informed that no price change for small and medium sized merchant bars were observed in the UK market last week. The local producers were offering merchant bars in a price range of ₤720-740/mt ($1,407-1,446/mt) ex-works, on actual weight basis, excluding VAT, with 60-day deferred payment.
Due to the holiday seasons in Italy, Greece, Spain and Portugal, no important development occurred in these markets during the past week.