Turkish merchant bar producers have further decreased their export prices as a result of lower billet prices and increased price pressure from their customers.
After decreasing export prices by $5/tonne the previous week, Turkish merchant bar producers had to further drop by $10/t last week. Current offers stand mostly at $470-480/t for angles, $480-490/t for IPN-UPN sections, $490-500/t for flat bars and $480-490/t for IPE sections. These are all on a fob Turkey basis. However, lower prices down to $460/t fob are still available from some angle producers, especially those that have favourable production costs.
A Turkish merchant bar re-roller tells Kallanish: “We are receiving price inquiries but due to the decreasing market conditions, we have sold below our regular tonnages this week. Most buyers have preferred to wait for some more time.”
Another Turkish merchant bar producer says: “After a very long time we have received an inquiry from Israel. That was for a specific material and, despite our previous offers, we were unable to compete with Chinese prices. Now that they cannot supply the material from China, they have turned to us.”
Although merchant bar demand in the EU, Middle East and Africa continues, buyers are seen to be targeting lower prices. Some low-tonnage containerized sales are heard to have been concluded at $460-470/t fob last week.
Considering billet prices are not yet lower than $380-385/t cfr Turkey, however, customers’ bids are largely not being accepted by Turkish producers.