With the increase in the Chinese section prices due to the rise in the export duties for various iron and steel products in China, there has been a slowdown in the orders given to Chinese producers and trading firms. The slowdown in buying activities in the European market due to summer and the good stock levels has triggered this situation. Both demand and prices slackened in the Greek market. The price of flat bar in that country is at €600/mt, while the price of equal angle is €570/mt. On the other hand, the price of square bar is at €550/mt, while the price of UPN-IPN is at €550-560/mt.
The calm in the Turkish local market continues due to the pre-election atmosphere. In last week's local market, the price of equal angles was at TRY 840-870/mt, while the price of flat bars was at TRY 850-890/mt. On the other hand, the prices of NPU and NPI were at TRY 875-900/mt. Equal angles and flat bars are available in stocks, and since the exports of I- and U-beams are at good levels, Turkish mills are even talking about late July shipments for equal angle and flat bar exports. Considering the fact that August is the holiday month in Europe, we may say that demand is slow for equal angles and flat bars to be delivered in August. Equal angles are being offered for export at $635-650/mt FOB, while flat bars are being offered at $660-670/mt FOB, with some offers being even lower than these levels. In the merchant bar category, the NPU and NPI profile market is again the most active market. There is still demand from Europe for I- and U-beams for which negotiations are going on for September shipments.
Since section prices have increased in China following the hike in the export duty, demand for Chinese materials in Africa has slowed down. The main reason for this situation is that the prices are found to be too high. As a result, Turkish mills, which had had to leave most of the African market (except for Morocco) to the Chinese, were again able to conclude sales to this region.
It seems that the calm in the merchant bar market will continue for a while. With the resumption of purchases for September shipments, the market may regain momentum.