Turkish merchant bar producers have increased their official quotes due to the rises seen in scrap and billet prices. Buyers, however, are seen resisting accepting new price levels and bidding at lower levels.

On Friday, most producers’ official export quotes were pegged at $680-700/tonne fob Turkey for angles, $690-710/t for IPN-UPN sections, $710-730/t for flat bars, and $690-710/t for IPE sections. These are up $10/t from last week. However, lower prices are also available from some producers, depending on their production costs and aggressiveness. 

Demand for Turkish merchant bars in the global market remains sluggish as buyers, who were finding prices already high, have faced further increases.

Although sales to North Africa at $640/t fob levels for angles were available at the beginning of the week, most producers are refusing bids at these levels on Friday.

A Turkish merchant bar producer tells Kallanish: "We have seen a sharp increase in scrap and billet prices. We can no longer afford prices below $660/t fob.”

A re-roller says: "The formula is clear enough. How are we supposed to sell at these levels where billet prices are at $550-560/t cfr and conversion cost appears at above $140/t? However, my regular Italian customer ignores all these and bids at $650/t fob with many special conditions."

Another re-roller who has no confidence in the market says he refuses to buy billet at $550/t cfr and just watches the market.

However, some producers that are more aggressive are seen accepting these levels in order to get a share from the limited demand. This is widening the price spread between producers.

While some special-sized material sales are heard this week, it is seen that competition in commercial material is becoming increasingly impossible for many Turkish merchant bar producers.

Although there have been sales to the EU, South and Central America, the Middle East, and Africa this week, the volumes remain small and unsatisfactory.