Although rebar demand in particular has been going through a difficult period in the Turkish longs market, local producers have been smiling in recent weeks thanks to merchant bar, and especially thanks to the merchant bar export market. It is heard that many Turkish merchant bar producers are currently offering to the export markets for October shipments.
The desired demand levels have not yet been reached in the local market. Activity on the rebar side has not yet achieved the desired level and this is still the main factor behind the low end-user demand for merchant bar in Turkey. Stockists and traders whose stock levels are decreasing continue to buy small tonnages.
Contrary to the local market, the Turkish merchant bar export market is registering strong levels of activity. With demand continuing to come from North Africa and the Middle East, which are the leading export markets, producers are busy both with current deliveries and their offers for October shipments. It can be said that in terms of exports the situation of merchant bar producers is slightly better compared to producers of other long products. Besides, it is observed that some sales with small tonnages are also being concluded to Europe.
As the latest scrap price increase seen in the past week is expected to be reflected soon in producers' prices, the fluctuating price trend is likely to continue in the market.
On the European merchant bar side, no important factor is seen which might cause a change in the silent market situation before the holidays. It is mentioned that European merchant bar producers may increase their prices after the holidays, similar to the expectation for other steel products.