Slight price softening in Turkish merchant bar market

In this week's Turkish domestic merchant bar market prices have been readjusted in line with weak demand and the continuing softening in scrap prices, despite the weakening of the US dollar against the Turkish lira.
 
Angle prices, which were standing at TRY 1,080-1,150/mt ($710-756/mt) + VAT ex-works last week, have declined to the level of TRY 1,056-1,140/mt ($695-750/mt) + VAT ex-works this week.
 
Merchant bar demand has not yet revived in the Turkish domestic market. Buyers indicate that they are trying to move cautiously given the possibility of price drops and so they are waiting for the market to stabilize. Accordingly, they are keeping their transaction volumes as low as possible, since activity on construction projects has not yet revived.
 
As regards Turkey's merchant bar exports, early last week angle export offers were at $720-730/mt FOB. Meanwhile, this week, although the US dollar is indicating weakness versus the Turkish lira, angle export offers have decreased to $710-720/mt FOB. However, some mills are making more aggressive offers at prices slightly below this range. Following the softening of Turkish mills' export offers, transactions in the export markets now seem to have begun to show some revival.
 
This week, following the Saudi Kingdom's announcement of its new construction budget, merchant bar demand in the country has seen some improvement. SteelOrbis has also learned that the Iraqi and Syrian markets have stood out among Turkey's key export markets this week. Meanwhile, some inquiries from the Central Asian Turkic republics have reached the Turkish mills, since construction projects have started in these countries. On the other hand, some low volume merchant bar shipments from Turkey to Senegal and Ghana have been made this week.
 
$1 = TRY 1.52