Last week in the European merchant bar market, the increased demand levels for Turkish material and the consequent rise in the prices of material of this origin gave reasons for optimism among market players. Raw material prices have shown an upward trend as have both domestic and export billet prices, leading finished steel prices to register an increase. In addition, trading activities have shown a recovery in the export market. In this context, the mills that had been continuously decreasing their prices have now begun to gain confidence as regards the future market.
Merchant bar producers in the Turkish domestic market started last week by maintaining the price levels of the previous week. However, the prices which were standing at levels of TRY 740-790/mt ($486-516/mt) at the beginning of last week began to rise approaching midweek. By the end of last week offers from the Turkish merchant bar producers for small sized NPI-NPU profiles stood at TRY 790-810/mt ($533-566/mt), for angles their offers were in the range of TRY 780-810/mt ($512-566/mt), while their offers for flat and square bars stood at TRY 780-820/mt ($512-538/mt) and for 80-100-120 mm IPE were at TRY 860-1,050/mt ($565-689/mt). The main factor behind these price increases in the domestic market was not the recovery seen in demand levels but rather the increases seen in the prices of raw material and billet. Also, it is heard that the Turkish mills are expected to push up their offers during the current week.
Last week, Turkish mills' merchant bar offer levels for the export market also registered an increase. It is possible to say that the demand coming from North Africa, Eastern Europe and Greece has exerted a further impact on export offers following the increases seen in the prices of raw material and billet. Turkish mills' offers to the export markets last week stood at $480-510/mt FOB for angles, for NPI and NPU they stood at $500-520/mt FOB, 80-100-120 mm IPE were in a range of $580-590/mt FOB, 80-100-120 IPE A stood at $590-600/mt FOB, 80-100-120 IPE AA were at levels of $600-610/mt FOB, while flat bars stood at $490-510/mt FOB. The prices in question are on actual weight basis and for November shipment.
Looking at southern Europe, we see that the offers from the mills have continued to soften. Last week, the Spanish domestic market maintained its sluggishness. The Spanish companies have continued to face financial problems. While stagnation continues in the domestic market, the mills expect positive developments to be seen in the export markets in the coming days. It is heard that IPN-UPN offers from the Spanish mills to the US have been standing at levels of €600-620/mt ($769-795/mt) for November shipments.
As for the Italian market, the mills have continued to lower their offers. Last week, offers on ex-works basis from the Italian merchant bar producers for small and medium sized profiles stood at €520-550/mt ($667-705/mt), their offers for 80-140 IPE were in the range of €650-680/mt ($834-872/mt), while their offers for 160-220 IPE stood at €700-730/mt ($898-936/mt). On the export side, it is heard that the Italian mills have offered to the Greek market and these offers have been competing with the Turkish mills' offers.
The offer levels of the merchant bar producers in the Portuguese domestic market have continued to soften, declining last week to levels of €520-530/mt ($667-680/mt) delivered to customer for small and medium sized profiles.
On the other hand, the merchant bar offers in the Greek market have decreased by €100/mt ($128/mt) month on month. The offers from domestic merchant bar mills have stood in the range of €440-460/mt ($564-590/mt) delivered to customer. Meanwhile, it is heard that some firms in Greece have received offers from the Turkish and Italian mills and that they have leant towards purchasing.
In addition, the producers in the UK have decreased their prices by £100/mt ($157/mt) over the past week. Their offers for small and medium sized profiles have dropped back to the level of £410/mt ($643/mt).
As for the Bulgarian domestic market, offers from merchant bar producers have been at $570-600/mt ex-mill.
Over the past week, prices have continued to soften in the European merchant bar market in general. The question of the permanency or otherwise of the price increases seen in the Turkish market is foremost in the minds of market players at the current time.