A fluctuating trend has continued to be observed in the past week in the Turkish domestic merchant bar market. While price levels had slightly softened towards the end of last week, they increased again on Monday, June 8. While strong scrap and semi-finished prices are the main reasons behind this increase, it is still not possible to talk about an increase in demand. In general, producers' price levels for merchant bars in Turkey are at TRY 760-830/mt ($489-533) ex-works excluding VAT as of June 8. It is thought that producers will likely reflect the strength of scrap and billet prices in their prices for merchant bars.
The Turkish domestic merchant bar market has continued to be characterized by silence. In general, Turkish producers have continued to offer at $490-510/mt FOB for July shipment. Local merchant bar producers had previously found it difficult to predict the prices of scrap and billet; however, considering the latest scrap deals in Turkey, it seems that the producers may offer merchant bars at more definite price levels during the current week. Additionally, the signs of an uptrend in billet prices will likely affect merchant bar price levels in Turkey. However, on the demand side, it should be noted that sluggishness still exists.
Demand for merchant bars is currently at low levels in Europe. Although producers have been trying to increase their list prices, they have been failing to reach their desired prices and order numbers due to the current poor demand situation, which in turn is caused by the present situation in the construction sector. Regarding price levels, in the last week merchant bar prices were in general at €400-430/mt delivered to customer in the European domestic markets. Deals in these markets were still for small tonnages and showed varying levels depending on customers and payment terms.