Wait-and-see situation prevails in beam markets

The Turkish domestic profile market was calm this week. It is possible to say that the problem recorded in U and I beams in previous weeks has lessened. Although merchant bars are the most active product group, there is a regression in demand. Financial embarrassment is one of the significant factors in this situation. The softening in scrap and billet prices has also teased the market players. This week, local merchant bar prices have almost remained unchanged. The local prices are moving in parallel with export prices. Angle prices are at TRY 920-940/mt, flat bars are at TRY 930-965/mt, while NPU-NPI prices stand at TRY 950-960/mt. The other significant development for the Turkish domestic market is that Karabuk Demir Celik has started to produce beams following the earlier investments it made. Kardemir's local sales price level for IPE 450 is at €760-770/mt. The import beam price rose €20/mt last week. With the increase in import IPE and H beam prices, price levels for IPE (100-600) group are in a range of €685-800/mt, while H beams (100-700) are at €750-800/mt. Uncertainty has dominated the beam markets this week due to the softening in scrap prices and the cancellation of the Chinese VAT rebate. The overall atmosphere in the markets favors a wait-and-see strategy. Post-Easter holiday, the markets started the week with the Chinese government's announcement of the VAT rebate cancellation, which has beam customers waiting to see the resulting developments. Turkish producers' angle offers are at $665-670/mt for June shipments, while their flat bar offers are at $675-680/mt. Bookings concluded to Israel this week are at $705/mt CNF for UPN for July shipment, and at $715/mt CNF for IPE. Ukrainian producers have also increased their April sale prices. Ukrainian offers for Moldavia are at $590/mt DAF for angles, at $600/mt for 10 mm flat bar, at $590/mt for 12 mm flat bar, and finally at $580/mt for 14 mm flat bar. As regards the Chinese mills, those with the CE certificate have increased their exports to Europe since H beam prices rose there. South Korea has also increased its exports to Turkey, Europe, North Africa and the Middle East. The most significant reason for this is the gap of $200/mt between the European producers on the one hand and the Chinese and S. Korean producers on the other. During the coming week, developments in the market will have to be monitored closely, with particular attention to be given to the effects of the softening scrap prices and the cancellation of Chinese VAT rebate.