Will the month of September, the end of summer and the return of the Europeans from holiday bring about the desired positive developments for the merchant bar market? After the slow month of August, some slight movements have started, but uncertainty still prevails. In some European countries prices are still at the same levels, but price increases are being tested in other European countries.
With regard to the European merchant bar market, the UK domestic market, which was active in August, saw a slowdown in the first week of September. It has been a matter of discussion in the UK whether or not the mortgage crisis in the US has had an effect on this situation.
Although demand has not shown the desired revival in southern Europe, Italian producers have raised their prices. In Greece, demand, which was stagnant in the summer months, has started to revive. There were rumors especially at the beginning of last week that Greek producers would increase their merchant bar prices by €20/mt ($27/mt).
As regards the Balkan countries, demand is currently calm in Bulgaria. September merchant bar prices have remained unchanged compared to August levels. Domestic merchant bar prices are currently at BGN 990-1,000/mt ($693-700/mt) ex-works, excluding VAT.
Turning to the Turkish market, the increases in domestic and import billet prices (the latter are almost at the same levels as domestic prices) have affected Turkish producers' merchant bar offers. With the increase in billet prices, Turkish producers have raised their merchant bar export offers to $660/mt FOB. Export offers for angle, flat bar and square beam are in a price range of $680-690/mt FOB. IPN and UPN export offers are $10-15/mt higher than this price range. Although the Turkish exports are not currently very active, if the European domestic markets become active, this situation would be likely to have a positive effect on Turkish exports.