The Turkish merchant bar market has made a quiet start to the current week. The caution Turkish rollers are showing in their merchant bar purchases gives reason to think that it is still early for long product demand to recover. Even though the construction season has started, the negative sales atmosphere continues as local buyers are still abstaining from purchase activity. In order for sales to pick up, either prices must decrease to the levels that will cause buyers to disregard their inventory levels or inventory levels will first have to decline further.
On the merchant bar exports side, although an average price system for extras has been put into practice as of April in Italy, merchant bar demand remains weak in the local Italian market. Buyers in the Middle East and North Africa are following a wait-and-see policy, just like buyers in Turkey. However, conclusions of some low tonnage merchant bar bookings in Morocco were heard last week. After the Istanbul Mineral and Metals Exporters' Association (IMMB) announces its April figures, the trends in export activity are expected to be become clearer.
In the coming days, the Turkish merchant bar market is expected to gain a more definite shape depending on how buyers in the Middle East and North Africa act in relation to purchases.