Holidays in the southern European merchant bar market has ended and the price levels in this market have decreased significantly compared to the pre-holiday period. Along with the low demand level and the downward trend in raw material and billet prices, the southern Europe merchant bar prices have decreased by €70-100/mt compared to the previous month.
In the Turkish domestic and export markets past week, the downward trend that has been observed several weeks now has maintained its trend. For this reason, the producers in this county have been facing with difficulties in selling their materials. Merchant bars have been offered in Turkey at TRY 1,030-1,370/mt ($843-1,123/mt) ex-works, excluding VAT in past week.
Turkish rolling mills' export offers for merchant bars last week (36th week) declined by a further $50/mt compared to a week before (35th week). In the first week of September, Turkish rolling mills were offering angles for export at $900-930/mt FOB on actual weight basis for September shipments. In addition, flat bars were offered at $910-930/mt FOB, 80-100-120 mm IPE was offered at $1,080-1,100/mt FOB, IPN-UPN were offered at $910-930/mt FOB and 80-100-120 mm IPE AA was offered at $1,100-1,120/mt FOB - all on actual weight basis and also for September shipments. It is heard that there were offers at lower levels than the abovementioned prices.
It is heard that the mills in China has offered 50 x 50 x 5 mm angles to the Middle East at the price levels of $950-960/mt CFR Dubai on theoretical weight basis. Meanwhile, it is reported that a deal for 588 x 300 and 294 x 198 mm H profiles has been concluded to the Middle East from China at the price level of $1,025-1,030/mt CFR Dubai on theoretical weight basis. The offer and the deal in question are on ex-stock basis and for October shipment.
Looking at the Spanish domestic merchant bar market, during past week the base price have decreased by €70/mt. The last week's offers in this market were heard at the following levels: €830/mt for NPIs, €820/mt for 100-180 mm NPIs, €950/mt for 80 mm IPEs, €940/mt for 100-160 mm IPEs and €850/mt for180-220 mm IPEs, all at ex-works basis. All prices are excluding VAT. However, it was heard that there were offers at lower price levels compared to the abovementioned prices.
In the Bulgarian domestic market, the merchant bar prices have decreased by around €100/mt compared to last month. It is heard that the merchant bars with size of 140 mm and below were offered during the last week at €750-760/mt delivered to customer, excluding VAT.
In the Romanian domestic merchant bar market, it is heard that the prices remained unchanged during the past week and buyers turned their attention to imports. In the last week, the mills' prices for the 140 mm and below sized merchant bars were at €820-850/mt excluding VAT.
It is observed that the price levels of the 140 mm and below sized merchant bars have softened by ₤20/mt ($35/mt) in the last three weeks period in the UK domestic market. It is heard that the materials in question are being currently offered at ₤700/mt ($1,243/mt) ex-works, excluding VAT in the UK domestic market.
In general, the price declines and the low demand situation in the Southern Europe merchant bar market are continuing, while the buyers are maintaining their "wait-and-see" policy.
€1 = US$1.432