Chinese effect on M. East, Africa and US merchant bar markets

The Turkish domestic market has continued its flat movement this week as well. Prices have remained almost unchanged for the last two weeks. There is a continuing lack of NPU and NPI supplies since the exporting rolling mills are allocating these materials for export. Therefore, the rolling mills that produce for the domestic market are now concentrating on filling the gap in the domestic market for NPU and NPI. Thus, the lack of supply of the said products is keeping the market afloat, even though the demand and the market is calm is general. Although the weather is good for this time of year, the weak level of construction activity and the financial difficulties in the market constitute significant problems. This week, the price level of angles in the Turkish domestic market is at TRY 845-870/mt ($600-620/mt), while flat bar prices are at TRY 855-880/mt ($610-630/mt), depending on the regions. The export offers for angle and flat bar are at $600-630/mt for April shipments. Turkish producers have reflected the strong billet prices and the availability shortage in their profile prices. Producers are giving June-shipment offers for I and U profiles - the goods most in demand. A U-profile offer for Israel is at $665/mt CFR Israel for June shipment. Some producers have started to avoid giving offers for these materials. It is possible to find angle and flat bar for April shipment. North Africa, especially Morocco, is very active in purchasing materials from Turkey. The Israeli domestic market is currently calm, with stockists' inventories full for the time being. Therefore, the country is not showing much interest in Turkish offers. Furthermore, Israel is facing difficult political issues at the moment. Also, the Chinese effect is gradually increasing in Israel, with Chinese profiles becoming more and more popular. Although the shipment period is late - minimum of two months - and big tonnages purchases are necessary, the price offers and product range creates a significant advantage for Chinese products. Greek merchant bar prices, which decreased in early January, started to rise in the early part of this week. Greek customers that had been acting with greater caution to the hikes in the merchant bar prices of the Turkish mills, now appear to be increasing their purchase activities. Please click for local merchant bar prices in Greece. The Italian domestic market is flat, despite the extra increases. The price level of merchant bar in the Italian domestic market is at Euro 540-560/mt. It is possible to see an increasing Chinese effect in the Middle East. Customers there are choosing to buy Chinese origin IPE and large size profiles since the European offers are higher. All the evidence indicates that the Chinese effect is increasing more and more in the Middle East, Africa and the US. How this situation will effect the market will become clearer in the coming days.