Turkish merchant bar producers have further decreased their export prices as a result of weak demand in global markets due to the coronavirus outbreak.
Although the number of customers inquiring for material is limited, offer prices currently stand mostly at $440-450/tonne for angles, $450-460/t for IPN-UPN sections, $460-470/t for flat bars and $450-460/t for IPE sections. These are $20/t lower on-week and on an fob Turkey basis.
A Turkish merchant bar producer told Kallanish on Friday: “It has been a very quiet week. Today we have seen a little move in the Middle Eastern market and managed to sell 4,000-5,000 tonnes of material.”
Some small-quantity sales were concluded to West African and Asian markets. Sales prices, however, at $420-435/t fob for angles, depending on the quantity and destination, were way below offer prices.
Turkish merchant bar producers are focusing on the shipment of previous sales as they are facing many problems due to widening coronavirus measures.
Although both domestic and imported billet prices are on a decreasing trend, Turkish merchant bar producers’ demand for billet is weak.
“Only two days ago, CIS-origin billet was sold at $360/t cfr in Turkey,” says another merchant bar producer. “Today we have offers at $350/t cfr. Who buys under the current situation? We don’t want to regret tomorrow what we buy today.”
“There are many factors that can make us regret what we have bought,” he continues. “First, virus measures are increasing each day. There is no guarantee for loading or discharging the material. As prices are decreasing each day, we are receiving many delays and/or cancellation requests. Our material is specific. I don’t know how long we will have to carry that material in our stocks if we receive cancellations… Why increase our risk by adding to billet stock?”