Looking at the European merchant bar market, we see that last week overall prices maintained their levels of the previous week. The primary issue discussed last week was the intention of southern European merchant bar producers to increase their prices in the coming weeks, in addition to the impact such possible increases could have on the weak end-user demand.
The Turkish domestic and export merchant bar markets, which had recently shown an amelioration due to the increases seen in raw material and billet prices, last week switched back to a downward course again. The main reason for this decreasing trend may be said to be the softening observed in import billet prices. The Turkish domestic merchant bar market started last week with a softening of prices. Towards mid-week these softenings continued to be seen in some regions in particular. By the end of last week, the Turkish merchant bar market stood at the following levels; small sized NPI-NPU profiles stood at TRY 900-950/mt ($571-603/mt), angles were in the range of TRY 880-950/mt ($559-603/mt), while flat and square bars stood at TRY 880-960/mt ($559-609mt). Meanwhile, the Turkish merchant bar market has started the current week with further price decreases. As of yesterday, November 24, offers from Turkish merchant bar producers for small sized NPI-NPU profiles and angles stood at TRY 830-900/mt ($526-571/mt), while their offers for flat and square bars stood at TRY 840-910/mt ($533-577/mt). In addition, the $/TRY exchange rate has led prices to show some changes. It should be taken into consideration that some mills may give offers below the above levels depending on their stocks.
Also, on the export side, last week's offers from Turkish mills displayed a softening trend. The decreasing prices of ex-CIS billet constituted the main factor behind this softening. Last week, Turkish mills' offers to the export markets stood at $550-580/mt FOB for angles, for NPI and NPU they stood at $560-580/mt FOB, for 80-100-120 mm IPE offers were in a range of $590-600/mt FOB, for 80-100-120 IPE A offers stood at $600-610/mt FOB, for 80-100-120 IPE AA offers were at levels of $610-720/mt FOB, while flat bar offers stood at $560-580/mt FOB. The prices in question are on actual weight basis and for November shipment. It is heard that there have been offers below these price levels. Meanwhile, the north African and eastern European markets have continued to be the target markets of the Turkish mills.
On the other hand, in the southern European market local prices last week maintained their levels of the previous week. The prices of small and medium sized merchant bars have remained unchanged in Italy, Spain, Portugal and Greece. While production cut-backs have continued to be seen, it is heard that the mills in these countries are likely to increase their prices in the coming days.
Looking at the Romanian market, it is seen that the mills have cut their production volumes by a reasonable margin. The figures mentioned for merchant bars in this market were in the range of $780-800/mt. In addition, it is heard that the end-users seeking to purchase material have been leaning towards imports.
Moving to the UAE market, prices have remained unchanged. End-users have abstained from purchases, while offers for small and medium sized merchant bars have continued to be seen in the range of AED 2,900-3,000/mt ($790-817/mt).
The upward course in merchant bar prices which had started in Turkey due to the scrap bookings concluded by Turkish producers four weeks ago (in the middle of the 44th week of the year) has recently also begun to be observed in the southern European countries in particular; meanwhile, in the Turkish market, last week has gone into the books as a week in which once again new decreases were registered.