Turkish merchant bar buyers delay their purchases

While the decline in imported scrap prices in Turkey has also pulled down merchant bar prices in the country, anticipations of a further decrease in merchant bar prices have led buyers to delay their purchases.
 
Following Turkish steel producers' return to the scrap market and the subsequent decline in scrap prices, angle prices in the Turkish domestic merchant bar market have regressed to the level of TRY 1,115-1,1160/mt ($698-726/mt) + VAT ex-works. Early last week, angle prices were standing at TRY 1,118-1,1170/mt ($700-732/mt) +VAT ex-works. With adverse weather conditions prevailing in Turkey, demand is yet to record the anticipated improvement. Turkish buyers have continued their spot market bookings in line with their needs.
 
On Turkey's merchant bar export side, following the decline in raw material prices, angle export offers have settled at $710-720/mt FOB for March shipments. However, some lower prices are also available in the market. This week, Ecuador and Chile have stood out among Turkey's key merchant bar export markets. Meanwhile, turning the absence of Egyptian market players into an opportunity, Turkish exporters have continued their merchant bar exports to the Middle East and also to the West African markets, enjoying lively demand in these regions.
 
As can also be seen from the SteelOrbis Reference Prices, due to sluggish domestic and foreign demand, merchant bar prices showed some softening early last week, followed by a flat trend until early this week when domestic merchant bar prices saw a downward correction. However, given the decline in scrap prices, buyers are delaying their new merchant bar purchases due to the possibility of a further decline in merchant bar prices.
 
$1 = TRY 1.599