Anxious days in Turkish domestic wire rod market

Tuesday, 30 September 2014 17:57:18 (GMT+3)   |   Istanbul
       

SteelOrbis has been informed by market sources that price levels in the Turkish domestic market for 6-7 mm mesh quality wire rod are as follows:

Region

Price ($/mt)

Marmara

591-602

Thrace

580-591

Izmir                                

576-584

Iskenderun

580-590

The above prices, which are on actual weight basis, do not include VAT and are on ex-works basis. The offers may differ depending on buyers and order sizes.

According to market sources, wire rod prices in the local Turkish market are in the range of $576-602/mt ex-works, excluding VAT, while transaction activity is quite weak. Turkish wire rod buyers have maintained a wait-and-see approach against the backdrop of the Turkish lira losing strength against the US dollar, with the exchange rate increasing to 2.289 as of September 29, its highest level since January this year. Additionally, scrap prices have been declining and are expected to decrease further, putting pressure on Turkish wire rod producers' prices.

On the other hand, Chinese producers have continued to lower their wire rod offers to Turkey over the past week, supported by decreases in iron ore prices. In the past week, ex-Chinese wire rod offers to Turkey have declined by $5-10/mt over the last two weeks to $465-480/mt CFR. Turkish wire rod offers to the local market are unlikely to be able to compete with the Chinese offers, with the difference between the respective prices expanding every day. This situation has increased anxiety levels in the market, while market sources believe purchases will be delayed until the US dollar-Turkish lira exchange rate stabilizes. 

$1 = TRY 2.28


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