Last week, prices increased both in the Turkish domestic and export merchant bar markets. The rises observed in scrap and billet prices as well as the incipient recovery of demand constituted the main factors behind the merchant bar price rises.
The rise in activity usually associated with the spring season has yet to be observed in the domestic market in Turkey, where the local elections have just concluded. Although prices have switched to an upward trend, no corresponding movement has been seen in terms of demand. As of today, March 31, local merchant bar prices in Turkey are in the range of TRY 765-840/mt ex-works, while prices continue to show some variation depending on the regions.
On the export side, offers given by Turkish mills have recorded a rapid increase. As of this week, merchant bar offers given to the export markets have reached levels of $480-500/mt FOB. As for demand in the export markets, a more positive picture may be observed compared to the situation in the local market. It is heard that Turkish mills have concluded sales to the Dubai market, which had not been showing any activity for a long time. Meanwhile, sales to North Africa have also continued. On the other hand, due to the activity initially observed in the finished steel markets, demand for Turkish billet has continued to come from the export markets.
Over the past week in general, activity has been observed on the export side in particular, though it is a matter of speculation how long this activity will continue. Market players are also wondering to what extent the increases seen in billet and finished steel products will be affected by the possible rise in scrap supplies with the arrival of the spring season.