The price level of mesh quality wire rods in the local Turkish market has this week been at $720-730/mt ex-works, excluding VAT, while drawing quality wire rods in this same market have been in the range of at $740-750/mt ex-works, excluding VAT. These prices have been able to gain acceptance due to the stability of the local market. However, the fact that the end-users have not been able to reflect these prices on to their final products may create difficulty as regards acceptance. Wire drawers and producers of pins, seals and mesh fences have kept production tipping over at minimum levels due to the tightening of prices.
On the other hand, the Turkish producers have been offering mesh quality wire rods for export at $730-740/mt FOB, and drawing quality wire rods at $745-755/mt FOB.
The Turkish producers do not seem so hopeful on the subject of exporting wire rods. It is expected that prices will continue to trend up due to the rising raw material prices and energy costs. However, the softening of freight rates may provide some hope for transoceanic exports.
Turning to the European wire rods market, the price level of mesh quality wire rod in the Iberian Peninsula is at €530-535/mt ($779-786/mt) delivered to warehouse for 30-day deferred payment, excluding VAT. Meanwhile, the Spanish producers have been offering mesh quality wire rods at €550/mt ($808/mt) delivered to warehouse, excluding VAT. However, the price level of actual purchases will be shaped in the upcoming weeks.