Turkish merchant bar exporters have achieved higher prices on North Africa-bound cargoes, enabling them to recover higher raw materials costs, mills and traders told MB.

Small parcels rolled in January sold to consumers in Libya and Tunisia at $560-570 per tonne fob main Turkish port, up from $550-560 last week, they said.

And some mills increased offers to $575-600 on the same terms as higher prices for US- and EU-origin scrap boosted the cost of production further.

MB heard of no completed deals at that level.

“Merchant bar producers are struggling,” said a representative from a Turkish merchant bar producer. “There is no profit and they’re making a loss which is why they have to raise prices despite weak demand and difficulties in securing orders."

"Turkish mills are keeping offer prices high because they do not want to make any more losses,” he continued.

Merchant bar buyers are reluctant to re-enter the market due to the recent price hikes. They’re sitting out of the market until it shows clear signs of stability, according to market sources.