Local Bulgarian longs prices indicate another sharp fall

Wednesday, 15 June 2022 16:04:18 (GMT+3)   |   Istanbul
       

Domestic longs prices have continued falling in Bulgaria under pressure from sluggish demand, low construction activity and the still relatively high stocks in the market. The recent sharp drop in Turkey’s export prices is also an important reason for the negative sentiment in Bulgaria’s market. As a result, local prices in the country have dropped by BGN 150-400/mt (€77-204/mt) depending on the product group. “The price drops for local rebar may seem too large, but I consider the market is simply going back to realistic levels and Bulgaria’s prices are still higher compared to some other European countries,” a source told SteelOrbis.

In the import rebar segment, the new EU quota period will be opened starting from July 1 and in theory Turkey would benefit from it. However, the quota for Turkey is expected to be filled very quickly since it is only a little above 86,000 mt. Therefore, Bulgarian customers prefer not to bear the risks of paying an extra 25 percent on imports and are considering offers from EU-based suppliers. Ex-Italy rebar offers are available at €750/mt FCA Bulgaria. SteelOrbis has learned. As for Turkey, mills’ offers were at $740/mt FOB last week, but currently the levels are at $710-715/mt FOB and even $700/mt FOB may be considered. “Turkish mills may attempt to quote lower for prompt shipment in order to convince European buyers to take the risk for the additional fee,” a source mentioned. The estimated delivered price from Turkey to Bulgaria is at around €700-715/mt CFR.

In the wire rod segment, ex-Turkey wire rod prices have decreased by $20-30/mt to $740-750/mt FOB, which is around €730-750/mt CFR, SteelOrbis estimates.

Ex-Poland offers for merchant bars are at €1,150/mt CPT and for sections are at €1,300/mt CPT. Italy is in the market to sell at €1,150/mt ex-works and €1,250/mt CPT for these products, respectively, while the Czech Republic in offering the mentioned products at €1,295/mt CPT and €1,350/mt CPT, SteelOrbis has learned. Offers from Turkey have been reported at €760/mt CIF for merchant bars and small-sized sections.

Local prices for long products in Bulgaria, BGN/mt (€/mt) CPT

Product

Price, CPT

Monthly change

BGN/mt

€/mt

BGN/mt

€/mt

Rebar

1,600-1,650

818-844

-390-400

-199-204

Wire rod

1,700-1,720

869-879

-350-380

-179-195

Merchant bars

2,050-2,100

1,048-1,074

-150-200

-77-102

Beams

2,500-2,600

1,278-1,329

-200-250

-102-128

€1 = BGN 1.956


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