The Turkish domestic merchant bar market has made a quiet start to the current week, while the selling prices of the previous week have maintained their validity. The ongoing lively competition on the rolling mill side in the Turkish market has continued to affect the market this week. While the approaching winter season has started to increase the pressure on merchant bar sales, recent changes in steel billet prices in the Turkish domestic market have exerted an influence on merchant bar prices. As regards steel billets, which constitute a key component in merchant bar production costs, the trend of slight improvement seen in steel billet export prices is expected to be reflected in local steel billet prices in the remainder of this week.
As regards Turkey's exports, just as for other long steel products, in the current period the West and Central African markets are maintaining their actuality for Turkish merchant bar exporters, while the Central American market is also proving to be an attractive destination for them. Meanwhile, buyers in the Middle Eastern and North African markets are cautious as regards new bookings. In Sudan, due to recent economic and political uncertainties in the country, local buyers are seen to be adopting a wait-and-see attitude. The Iranian market, however, is still lively for both steel billet and merchant bar sales.
Following Turkish rolling mills' angle offers at $630-640/mt FOB for November deliveries, we will be monitoring to what extent these price levels will be accepted by buyers.