Turkish and European merchant bar markets are still not showing much response in terms of end-user demand. Long product prices, which went up in line with the rising semi product prices, reached their maximum level with the increase of the US dollar in the third week of January. The American dollar, which gained strength following the huge loss announcements of major world banks as of early in the second week of January, caused an increase in long product prices on a TRY basis in the Turkish local market. In the last days of the second week of January, long products increased by TRY 50-60/mt to TRY 890-940/mt excluding VAT, in line with the fact that the US$/TRY exchange rate reached 1.22 in the space of a week. Currently, having entered the second month of 2008, the US$/TRY exchange rate has decreased to 1.17 compared to the previous week. Although the decrease in question caused the downward movement in TRY-based prices, the prices are keeping their strength on a US$ basis. The decrease in the TRY-based price has been showing varying impacts in the different regions. The merchant bar prices this week depending on size, thickness and regions have been at the following levels: angles at TRY 930-985/mt, flat bars and squares at TRY 940-980/mt, NPI-NPU at TRY 940-960/mt and IPE at TRY 970-990/mt - all prices excluding VAT.
Turkish exporters continued to make shipments over the past week, keeping their prices unchanged compared to the previous week. In the Turkish merchant bar export market, Turkish rolling mills are offering angles for export at $800-810/mt FOB on actual weight basis for March/April shipments. In addition, square and flat bars are being offered at $820-840/mt FOB, while NPI-NPU are being offered at $810-835/mt FOB, 80-100-120 mm IPE is at $869-884/mt FOB, and 80-100-120 mm IPE AA is at $879-909/mt FOB - all on actual weight basis and also for March/April shipments.
Turkish and Ukrainian exporters had extended their share in their favorite market - the UAE - especially in the period following China's exit of the UAE market due to the Chinese government's export duty. However, it is heard that there are still offers being given to Dubai from China. SteelOrbis has learned that the offer from a Chinese trading firm at the price level of €572/mt ($848/mt) CFR Dubai on theoretical weight basis has been declined by importers in the Middle East. It is reported that IPE offers have declined to €550/mt ($816/mt) CFR Dubai. It is thought that the companies offering these levels are also Chinese. In addition, it is heard that some offers from Turkey, for flat bars at $825/mt CFR Dubai and for angles at $815/mt CFR Dubai, are finding some buyers.
The rising merchant bar prices in Europe in the second week of January made European producers happy. However, the Italian producers have started to face difficulties concerning acceptance in the Greek market, where they had been exporting before the price increases in question. The latest deals between these countries were at the price level of €560/mt CFR Greece. The merchant bar prices in the Greek local market are as follows: angles at €600/mt (890$/mt), flat bars at €620/mt ($919/mt),, squares at €600/mt ($890/mt) and IPE at €650/mt ($964/mt), all prices excluding VAT.
We will see more clearly how demand will change and what the new offers will be in the global merchant bar market in the upcoming days.