Merchant bar sales prices in Turkey have been updated this week after the reflection of price movements in scrap in billet prices. Following the price increase announcement for angles in Turkey's Iskenderun region, other price increase announcements have been made in other regions of Turkey. For the time being, the reaction of Turkish buyers to these increases is being awaited impatiently.
Buyers are expected to seek to replenish their inventories this week, ahead of the Feast of Sacrifice holiday. Meanwhile, slowing activity in the construction industry is also expected to influence merchant bar sales.
As regards the macro-economic situation, the Turkish Treasury recently announced that it will increase the budgetary debt ratio for a period of four months. And in the US, following the mid-term elections being held today, the Federal Reserve (FED), whose policy has been effective in the weakness of the dollar against the euro, will announce its new intervention in monetary policy tomorrow. With these developments, the foreign exchange market is expected to acquire more definite shape. In this context, the TRY/$ exchange rate at levels of up to 1.42 is expected to be reflected in prices on TRY basis. Meanwhile, possible changes in the euro-dollar exchange rate are likely to affect Turkish merchant bar export offers and the strategies of European producers in their sales to the North African market.
Regarding the export markets, the UAE continue to be an attractive market, while Latin America and West-Central Africa are considered as key destinations for exports.
The price trends of raw materials and steel billets will determine the direction of offer levels for the Turkish domestic market and for the export markets. However, the key factor will be whether international merchant bar buyers welcome the new price levels.