Turkish wire rod producers have this week been offering mesh quality wire rods to their domestic market at $1,150-1,310/mt ex-works on actual weight basis excluding VAT. Although it is heard that some end-users have concluded deals at the price level of $1,150/mt, there have been only a few transactions at this level up to now. However, some producers have kept their current price lists unchanged due to the expectation of a price increase in September; instead they have simply changed their payment terms for end-users. It is thought that the producers have taken this decision for two reasons:
Firstly, some producers are not eager to reduce their price levels for end-users since the order books of these producers have almost been filled for export deliveries (concluded when prices were increasing) for August and September. Secondly, there is a possibility of an advantage for the Turkish producers' exports (particularly to the Middle East) due to the fact that the Chinese government may cancel the five percent export rebate for Chinese origin boron-added wire rods as of September 1, and, additionally, there may even be a fifteen percent export duty applied for the products in question. At the same time, Europe's imminent return to the market from its holidays as of late this month has been strengthening the Turkish producers' expectations of positive developments in the area of exports.
It is heard that this week there have been offers of large quantities of 1008 grade boron-added wire rods from China to Saudi Arabia at an average price level of $1,000/mt CFR Dammam for August shipments.
In the Romanian domestic market, prices have been maintaining the softening trend which we mentioned in our last week's analysis. Looking at the prices in this market, with low carbon wire rods at $1,150-1,200/mt ex-works excluding VAT, it is heard that there have been offers for the same grade material from Ukraine to this market at $1,000-1,100/mt FOB for September shipments. It is reported that there have also been export offers from Moldova for the same grade material at an average of $1,100/mt FOB for September.
While currently experiencing difficulties in talking about a definite price level for exports, the Turkish producers are expected to determine a new price range in the coming days when Europe returns to the market.
In the Turkish domestic market, as the producers have been offering SG2 grade material at the price range of $1,260-1,500/mt ex-works excluding VAT, it is mentioned that some traders may offer the same grade material to the market in the upcoming days. However, no price range for the grade in question has been mentioned by the traders yet.