Signs of the upcoming holidays have been observed in the past week in the Turkish local and export merchant bar markets. Some producers, who have been trying to bring in revenues and are thus seeking to melt their stocks as far as possible, have decreased their price levels. End-users have been choosing not to buy due to their worries as regards the possible market situation after the holidays. Some problems in the cash cycle have also been affecting the market negatively in Turkey. In the last week (49th week of 2008) the merchant bar prices in Turkey were at TRY 770-800/mt ($491-510/mt) for IPN-UPN, at TRY 770-800/mt ($491-510/mt) for angles and TRY 780-800/mt ($497-510mt) for flat bars and squares - all prices are ex-works, on actual weight basis and excluding VAT. However, it should be taken into consideration that some mills have offered at below these levels depending on their stocks and cash payment terms.
The softening trend on the Turkish merchant bar market export side continued to increase slowly in the last week. Prices in this market were mainly shaped by the price softening in mentioned CIS billet prices and depending on news of both export and import merchant bar deals. It was heard in the last week that some producers gave their price offers for January and February shipments. Producers that have materials in their stocks continued to give offers for December shipments. Accordingly, Turkish rolling mills were offering angles for export at $500-510/mt FOB on actual weight basis for December shipments. In addition, flat bars were being offered at $500-510/mt FOB, 80-100-120 mm IPE was being offered at $530-540/mt FOB, IPN-UPN were being offered at $510-520/mt FOB, 80-100-120 mm IPE A was being offered at $540-550/mt FOB and 80-100-120 mm IPE AA was being offered at $550-560/mt FOB - all on actual weight basis, excluding VAT and also for December shipments.
In the European merchant bar markets different price movements have been observed in the last week. Producers in Italy have increased their small and medium merchant bar prices by €20/mt. In addition to the rebound in scrap prices, demand from stockists (who have been seeking to build up their stocks) may be considered as the main reasons behind the increase in question. Accordingly, the Italian producers' offers for small and medium merchant bars stand in the range of €510-540/mt.
Beam prices in Spain continued to soften in the last week. The demand observed on the merchant bar side were not seen on the beams side in this country. Accordingly, IPN, UPN and IPE prices in the local Spanish market, depending on size, thickness, regions, and also on the fact that some producers may sell at lower levels than the mills' prices in order to melt their stocks were in the last week at €530/mt ($676/mt), at 80-160 mm for UPN, €530-540/mt ($677-689/mt) for 80-180 mm IPN and at €580-590/mt ($740-753/mt) for 80-220 mm IPE. In Portugal, IPN and UPN prices fell in the last week by €15/mt compared to the previous week to the levels of €580-585/mt ($732-738/mt) delivered to customer, excluding VAT, on actual weight basis and for 30-60 day deferred payment. Prices in Greece remained unchanged in the last week. Prices for merchant bar of 140 mm and below sizes in the UK domestic market were varying in a range of ₤430-440/mt ($640-655/mt) ex-works, on actual weight basis, with 60-day deferred payment, excluding VAT. Merchant bar mills in the UK increased their prices by ₤30/mt last week.
In the last week the European merchant bar market continued to be characterized by financial problems, difficulties in obtaining credit, and by low demand. As they await the Christmas and New Year holidays, market players in Europe are now trying to shape their strategies for the post-holiday period.