Price fluctuations have been observed in the last week in the Turkish domestic merchant bar market. Although the US dollar/Turkish lira exchange rate is an important factor in these ups and downs, the main reason behind the fluctuations is the lack of demand. The latest price levels last week were at TRY 780-850/mt ($498-543/mt) ex-works excluding VAT. These price levels have remained unchanged in the early days of the current week.
On the export side, merchant bar demand is still at low levels especially when compared to demand for rebar. While the producers' merchant bar offers are at $490-520/mt FOB, buyers continue to give firm bids. Sales are still being concluded, mostly to Iraq, North Africa and the Middle East.
Meanwhile, in Europe it is heard that the Spanish producers are likely to hike their prices once again after the €30/mt FOB increase seen in recent weeks. Scrap prices, rather than demand, are still the main trigger for such price increases. Merchant bar price increases have been observed in Italy in the last week. However, due to the lack of demand, it is possible to hear different price levels depending on customer, product and tonnage in this country.
In general, as long as the softening continues in construction and in industry, it currently seems difficult to overcome the slackness of demand in the market for merchant bar, for which demand has been affected the most of all other long products in Europe.