Longs prices in Bulgaria down sharply due to low demand and competitive imports

The Bulgarian domestic longs market witnessed a significant price decrease over the past month, reflecting the generally pessimistic situation seen across the European Union. Most main producers in the EU have been dropping the prices for several weeks now due to low trading activity and even lower capacity utilization rates, which have been failing to offset the downturn. Along with the low domestic trade in Bulgaria, there have been aggressive import offers from neighboring countries.Over the past month, Bulgarian domestic longs prices have fallen by BGN 150-170/mt (€77-87/mt). Most mills in Turkey and Europe are giving aggressive prices to generate sales due to the sluggish demand. "The situation in Bulgaria is really bad. Demand is 50 percent lower than usual," a source told SteelOrbis.

In the import segment, ex-Turkey rebar and wire rod prices are available at around €605/mt FOB and (€620/mt) FOB respectively. In addition, ex-Italy offers particularly for Bulgaria are at €640/mt FOB and €650/mt FOB respectively. In the merchant bar and beam segment, ex-Turkey equal angle and flat bar prices are available at €625/mt FOB and €635/mt FOB this week.

Last week, ex-Spain merchant bar offers were at €1,020/mt CIF and ex-Poland offers for merchant bars and beams were at €910-990/mt CPT for fourth quarter deliveries. The sea freight charges are roughly €60/mt from Spain and Italy and at €15-25/mt from Turkey, while land shipment costs from Poland are around €70-90/mt. All import offers are for late November and December shipments or deliveries.

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

€1 = BGN 1.956