This week a silent atmosphere has predominated in the Turkish wire rod market. Although there has been no problem with regard to wire rod supply in general, end-users have been confused by the various wire rod offers coming from different mills. In addition, due to their deliveries of previous wire rod bookings, some mills appear to have no intention to supply wire rod to the market. Thus, it is heard that the mills in question are keeping their wire rod sales prices at quite high levels.
Given the increase seen especially in the number of offers for ex-China wire rod, China has now started to be mentioned more frequently as a possible supplier in the international wire rod market. Although Chinese origin offers may vary depending on regions in the international wire rod market, some ex-China boron-added wire rod offers are heard in the range of $500-520/mt FOB. Considering the export rebate effective for Chinese origin boron-added wire rod and the shorter lead times involved as compared to Turkish offers, market players in the Far East are now having greater difficulties in deciding from where they should import.
This week, it is heard that Turkish mills have offered wire rod to the Far Eastern market at lower levels as compared to their previous offers and that some of them have also concluded high tonnage wire rod bookings to this market. It has also been learned that, in those orders delivered from Turkey to the Far East, bars have also been sent in addition to wire rod. Meanwhile, some Turkish mills still intend to conclude exports to the US. Also, it is observed that the number of Turkish export offers given to southern Europe in particular has indicated an increase.
It is heard that Italian mills have this week offered mesh quality wire rod to their local market at the levels of €370-380/mt delivered to customer, and that their drawing quality wire rod offers are this week in the range of €390-400/mt delivered to customer. Demand has continued to maintain its silence and end-users are said to be moving cautiously as regards import offers. Moving to Spain, it is mentioned that price levels are close to the Italian market levels; however, demand in the Spanish market is more sluggish than in Italy. The main reason for this situation is that some Spanish end-users, who have kept their stocks at high levels since before the holidays, have moved cautiously with regard to new wire rod purchases in the post-holiday period. Meanwhile, it is heard that there are offers from southern Europe to Turkey for high carbon wire rod at €370-380/mt C&F for October/November shipments.
Everyone in the international wire rod market is now focused on the period after the Ramadan holiday. In the coming week we will watch closely to see whether the anticipated movement will show itself in the Turkish and Middle Eastern wire rod markets and we will also watch for the possible reflection of this process in the international wire rod market.