Mesh quality wire rod prices in the local Turkish market have this week been showing variation according to the different regions. Price levels of $950/mt ex-works excluding VAT in the Marmara region and of $1,310/mt ex-works excluding VAT in the Iskenderun region are being heard. Two main reasons may be said to be behind these price variations. Firstly, the producers in Iskenderun use iron ore instead of scrap as raw material, while the producers in Marmara use scrap. Secondly, some producers have fulfilled their order books for exports for September shipments and these producers are unwilling to revise their price levels for the local market since they have pre-payment agreements with the end-users in the local Turkish market.
Meanwhile, as another important factor, although end-users have heard the low-priced offers and want to buy at these levels, it is heard that the producers are not eager to sell at the low levels in question.
It is heard that the export offers from China to the Middle East for 1008 grade boron-added wire rods have this week been at an average of $960/mt CFR Saudi Arabia for September shipments; in the meantime, it is heard that the same grade material has been offered at $940/mt CFR Dubai with the same terms. Although it is heard that Turkish producers have this week been offering low carbon wire rods at $1,100/mt CFR Jeddah for September shipments, it is observed that the end-users in this market are more in favor of the offers from China.
In the Romanian domestic market, low carbon wire rods have this week remained at $1,150-1,200/mt ex-works excluding VAT. It is reported that local demand in this market, which has been calm in the current week, is waiting for Europe's return from its holidays.
It is heard that the price level of low carbon wire rod in the local Bulgarian market is at an average of BGN 1,500/mt ($1,130/mt) ex-works, excluding VAT. Imports of higher priced material from Turkey are seen to be behind this high domestic price level. The demand level has been weak in this market during the current week; however, it is heard that the end-users have been purchasing just to meet their day-to-day needs.
In the Turkish domestic market, the producers have still been offering SG2 grade material at the price range of $1,260-1,500/mt ex-works excluding VAT. Offers from Europe to Turkey for the same material have also remained unchanged this week, still at the price level of €900/mt ($1,327/mt) CFR Turkey's southern ports. No new import offer has been heard for this week.