Posted on 14 Oct 2019
Despite low levels of demand and increasing pressure from customers, Turkish merchant bar producers have no room to decrease their prices further.
Being unable to buy billet at desired prices, Turkish merchant bar re-rollers tried last week to keep their prices at previous week’s levels. However, limited global demand and buyers’ bids at much lower levels have forced Turkish merchant bar producers to further reduce quotes.
After decreasing by another $5/tonne last week, Turkish producers’ offer prices stand at $440-455/t for angles, $445-460/t for IPN-UPN sections, $450-470/t for flat bars and $450-465/t for IPE sections. These are all on an fob Turkey basis.
A Turkish merchant bar re-roller tells Kallanish: “Since demand is very low, it has completely become a buyers’ market. We cannot designate a price to offer, customers come with the price and we just make the decision on selling or not. Flat bars used to have a premium of $20/t but now the prices are almost the same as IPE sections.”
“Considering the price of billet, which is not lower than $370/t (ex-works), we should not have decreased prices further,” he continues. “But market conditions, specifically low levels of demand, made us do it. I am hearing lower offer levels from other Turkish producers. No idea how they can afford prices below $435-440/t fob. We are already on the edge.”
Kallanish hears that bids from North African customers vary at $400-420/t fob for angles.
