Turkish merchant bar export offers move up slightly

Although Turkey’s merchant bar export prices have moved up in the current week, demand for Turkish merchant bar in the international market has been at low levels as buyers have adopted a wait-and-see stance towards new purchases. Turkish merchant bar mills’ export offers have increased by $7.5/mt this week to $515-545/mt FOB. SteelOrbis has been informed that slightly lower offers from Turkey can be found for large volumes. Meanwhile, international buyers’ firm bids are heard to be at $510-530/mt FOB.

It is observed that price inquiries for Turkish merchant bar are mostly received from the Middle East and southern Europe. Middle Eastern buyers want to conclude purchases for delivery after the end-of-Ramadan holiday, since if the products are delivered  before then they will cause additional inventory costs. Although a merchant bar offer from Turkey to Morocco at $530/mt CFR was heard in the market at the beginning of the current week, this price level is now considered to be very low as compared to the $515-545/mt FOB levels mentioned above. Additionally, it has become harder for Turkish merchant bar mills to determine their new export prices due to the increases recorded in CIS-origin billet quotations which are now at $440-460/mt CFR Turkey, with billet being an important cost item for Turkish mills.

Under the current circumstances, international demand for Turkish merchant bar is not expected to gain momentum.

Turkish merchant bar export prices are currently at the following levels:

All prices are on FOB basis and for June shipment.