The billet price increase in the local Turkish market showed an impact on the domestic merchant bar prices. The respective price ranges for angles, flat bars and NPU-NPI in the Turkish domestic market are: TRY 800-835/mt ($675-704/mt), TRY 815-830/mt ($688-700/mt) and TRY 815-830/mt ($688-700/mt). All prices exclude VAT.
Although the Turkish merchant bar producers had managed to conclude sales on a small scale to Europe at the price level of above $640-650/mt FOB before billet prices reached $560-570/mt, they fulfilled their order books until February 2008 thanks to sales to the Middle East market, especially to Dubai and Jordan. They were able to penetrate these Middle East markets due to the rising Chinese price levels. As of this week, prices of angles and flat bars in a range of $690-700 FOB for early February shipments are being mentioned.
A lack of activity still continues in the overall European market. While the Spanish domestic merchant bar market has been maintaining its calm trend, the price level of merchant bar in the market in question is at €510-515/mt ($748-756/mt) delivered to warehouse.
Approaching the end of 2007, the demand level for merchant bar in the domestic Italian market is not strong. The price level in the Italian domestic merchant bar market for angles is at €460/mt ($675/mt) delivered to warehouse. While the price level of Italian-produced IPE of sizes up to 140 mm is at €600/mt ($880/mt) ex-works, imported IPE of same sizes in the local Italian market is at the price level of €590/mt ($866/mt) free on truck for 60-day deferred payment. The price level of Italian-produced 180-200 mm IPE in the local market is at €630-640/mt ($924-939/mt) ex-works.
The UK merchant bar market still lacks briskness. In the local market, merchant bar prices are at £350-360/mt ($722-743/mt) delivered to warehouse. Even though the domestic market is registered a lack of activity, imports of 180-200 mm IPN and UPN still continue.
Although the price level of merchant bar in the local market in Greece decreased, demand is better now. However, it is expected that some tightness will be seen in demand with the approach of the end of the year. The respective price ranges for angles, small size flat bars and large size flat bars in the Greek domestic market are: €545-55/mt ($800-814/mt), €570/mt ($836/mt) and €600-610/mt ($880-895/mt) ex-works.
In this period coming up to the end of the year, the overall European market is expected to be characterized by calm due to the approach of the holidays; however, according to the expectations for 2008, the global merchant bar market will gain momentum.