Turkish merchant bar export prices under pressure

Turkish merchant bar producers, amid pressure from buyers, have chosen to narrow down their export offer range. As a result, their prices have decreased by $20/mt on the upper end over the past two weeks. An additional reason for the decrease are the diverse expectations regarding the trend in the scrap and billet sectors. Some weakening is considered possible in the raw materials’ trade as mills have mostly restocked for March shipments. In the billet market, sources expect local producer Kardemir to announce billet prices shortly, which would set a benchmark for buyers.

As of February 26, Turkey utilized around 93 percent of its merchant bar quota in the EU. The unused quantity is 21,649 mt, though 1,145 mt is already waiting at EU ports to be processed by customs. Moreover, the same percentage is also valid for big size beams (80 mm and above) with only 8,949 mt remaining unused and 2,292 mt expecting clearance at customs. Although trading is considered risky, there are some orders coming in as the buyers are most probably counting on the “other countries” quota to open up in April.

Some sales were closed to Morocco with no details disclosed, while buyers from Tunisia prefer to wait for now. Some inquiries have been coming from Latin America, which may result in some transactions shortly, SteelOrbis understands.

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

All prices are on FOB basis and for late April and May shipment.