It is observed that merchant bar offers from Turkey to the international markets have ranged at $545-555/mt FOB in the current week. Meanwhile, demand for Turkish merchant bar in the international markets has been at low levels in the given week.
Market sources state that overseas buyers expect Turkish merchant bar prices to fall in the coming period due to the decreases recorded in scrap quotations, while buyers’ firm bids are currently at $535-545/mt FOB.
On the other hand, Turkish merchant bar exporters are receiving stronger demand from countries in Central and Southern America as well as from Africa. Demand for Turkish merchant bar received from the Middle East is at low levels. Meanwhile, Turkish mills are unable to meet the demand received from the European Union given the import quotas.
Additionally, it is observed that Turkish merchant bar producers have not reduced their offers to buyers’ desired levels. Although both import and domestic billet prices have moved down following the decreases recorded in scrap quotations, SteelOrbis has been informed that mills consider this fall inadequate and expect further downward revisions in billet prices. Accordingly, Turkish merchant bar mills are not expected to reduce their export prices to meet buyers’ firm bids until their production costs decline to the levels they desire.