The global merchant bar market is slowing down at the current time. In the European domestic markets the approaching holiday period and the high stock levels of end-users are the main reasons for the decline in prices and the slow demand. Fierce competition is being observed especially as regards small size merchant bars.
The price level of 180-200 mm IPE in the local Italian market is at €630/mt ($859/mt) delivered to warehouse in northern Italy, excluding VAT. Prices in southern Italy are in a range of €650-690/mt ($890-945/mt) delivered to warehouse, excluding VAT, due to the freight rates. The level of €690/mt ($945/mt) is valid for sales of small size merchant bars. Meanwhile, the price level of UPN of sizes up to 140 mm in the local Italian market is at €520-545/mt ($709-743/mt) delivered to warehouse in northern Italy, excluding VAT. Price declines are being felt keenly in small sizes. The fact that Beltrame's plant at Valenciennes in France will be closed for eight weeks for renovation starting from early August seems likely to cause a shortfall for merchant bars of over 300 mm. Besides, prices have not fallen much for large sizes.
Prices in the Greek market have also indicated a decline. The stagnation that started with the Easter holiday in Greece is still continuing. Angle prices are in a range of €545-555/mt ($742-756/mt), flat bars are at €570-580/mt ($776-790/mt), square bars cost €540-550/mt ($735-749/mt), UPN-IPN are at €600-610/mt ($817-830/mt), IPE 180 prices are at €710-720/mt ($967-980/mt) and IPE 200 is at €760-770In /mt ($1,035-1,048/mt). All prices exclude VAT and are delivered to warehouse.
In the Turkish domestic market scrap prices are indicating calm movement while rebar prices are not very strong. Billet prices have remained unchanged in the domestic market. Merchant bar prices have not shown much change either. Angle and flat bar demand is not strong, especially due to the slowdown in the southern European domestic markets. Producers' IPN and UPN production capacities are at good levels since the producers' sales for these products are good and they are able to make offers for September-October shipments.
The merchant bar market may see a rally after stock levels have been reduced and when the holiday period has come to an end in Europe.