Turkish merchant bar producers have decreased their export quotes due to the further weakening in global demand.
On Friday, Turkish producers’ export offers stood mostly at $735-755/tonne fob Turkey for angles, $745-765/t for IPN-UPN sections, $755-775/t for flat bars, and $745-765/t for IPE sections. However, there are also offers at lower levels, with quotes seen varying depending on producers’ production cost, capacity utilisation level and freight rates.
A Turkish merchant bar re-roller tells Kallanish: “For a shipment to Morocco, I received a freight offer at $70/t today. It used to be $20/t. One of the reasons for the price spread between producers is freight rates. Since there is no indicative price for freight, everyone has a different rate.”
A producer is heard to have offered angles to North Africa at $730-735/t fob. Although bookings are slow, Turkish merchant bar producers concluded sales to the EU, North Africa, West Africa and Latin America last week. However, high freight rates are hindering sales and decreasing offer-order conversion rate.
Another producer said on Friday: “Despite the [summer] holidays, we continue to receive inquiries from the EU. I can even say that European demand is the strongest because demand, in general, has slowed significantly this week compared to last week.”
Prices have also declined in Turkey’s domestic market. A producer in the south is heard offering angles at $700/t ex-works.
Billet, prices, meanwhile, are also decreasing in Turkey. A southern mill has sold billet at $660/t ex-works, VAT excluded. There are offers from other Turkish mills at $675-685/t ex-works.
Burcak Alpman Turkey