The prices in the Turkish merchant bar market have declined this week, due to buyers' hesitancy in accepting increased merchant bar prices during recent weeks and also due to the drop of the US dollar/Turkish lira exchange rate to the level of 1:1.53. In the Turkish domestic merchant bar market, angle prices have decreased by TRY 10-30/mt ($7-20/mt) week on week to TRY 1,120-1,180/mt ($730-770/mt) + VAT ex-works. Despite the softening of prices, at the beginning of the current week merchant bar transaction activity has remained sluggish and the expected revival of demand for merchant bar has not yet manifested itself.
As regards Turkey's merchant bar exports, export offers have softened in line with domestic merchant bar prices. As can be seen from the SteelOrbis Reference Prices, after reaching $750-770/mt FOB level last week, Turkey's angle export offers have now regressed to $735-745/mt FOB for February shipments. This offer level has become more attractive as compared to merchant bar prices in Turkey's western neighbor -Greece, which stood at €580-590/mt ($778-791/mt) ex-works last week.
Lately, West Africa, Libya and the US have stepped forward among Turkey's key merchant bar export markets. SteelOrbis has learned that some low-volume merchant bar transactions have been concluded to these regions at the abovementioned levels.
These days, the common question posed by Turkish rolling mills, traders and buyers is whether this latest drop in merchant bar prices will evolve in to a more sustained downward trend in the merchant bar market.
$1 = TRY 1.341
€1 = $1.341