US merchant bar demand stagnates while prices remain firm

Monday, 22 October 2012 23:41:44 (GMT+3)   |  

Taking the biggest hit of all US domestic long product decreases this month, merchant bar transaction prices dropped $2.00 cwt. ($44/mt or $40/nt) last week, bringing published prices into the range of $38.10-$39.55 cwt. ($840-$872/mt or $762-$791/nt) ex-mill, depending on size and shape.  Sources tell SteelOrbis that spot prices have remained firm with published prices, with smaller distributors able to compete with larger distributors who aren't getting severe discounts from the mills at the moment.  However, demand for merchant bar is rather tepid, with ample availability at the mills.  Further, distributors are currently wary of stocking up inventory too much, which has also led to a decrease in import interest.

While there are some relatively attractive import offer deals out there for January delivery, sources tell SteelOrbis that there's no guarantee those prices will still be attractive compared to US domestic prices when they arrive at US ports.  Therefore, traders are reporting minimal activity in the merchant bar realm, and as such, offer prices from Turkey have not changed much in the last month in reflection of new orders.  Turkish merchant bar offers are still in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) DDP loaded truck at US Gulf ports (typically, for specialty sizes and shapes), which has been stagnant since the end of summer.


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