The Turkish domestic wire rod market has been fairly active this week. The price lists announced by producers have changed day by day. Although in this lively context it is reported that mesh quality wire rod prices offered by the producers in the local Turkish market have been in the range of $1,150-1,320/mt ex-works excluding VAT, it is expected that this wide price gap will narrow somewhat with the adjustments expected in the coming days.
The most important topic of conversation in the Turkish export market these days is the price decrease trend. This decrease can be explained as follows: Europe has stopped its purchasing activity due to the arrival of the holiday season and there has been a suspension of wire rod purchases by the Middle East, which is one of the most important wire rod export markets for Turkey. The reason behind the Middle East situation is the low prices of Chinese export offers to this region. It is heard that 1008 grade boron-added wire rod is being offered from China to the Middle East at an average price level of just below $1,100/mt C&F for August shipments. Since end-users in the Middle East are not overly concerned with quality and are concluding large tonnage bookings, it seems possible that deals may be concluded at lower price levels compared to the abovementioned.
The price level for low carbon wire rods in the local Romanian market has this week been in the range of $1,250-1,290/mt ex-works, excluding VAT, while the same grade material is in the same price range in the local Hungarian market. It is reported that demand is currently at weak levels in the Romanian market. Turning towards the Ukrainian market, the price level of low carbon wire rod in this market is in the range of $1,230-1,260/mt ex-works, excluding VAT. It is heard that this market is at present abstaining from giving export offers to Turkey for wire rods.
Looking at the local Turkish market situation last week, medium and high carbon wire rods had been expected to decrease in line with the low carbon wire rod prices; yet they remained stable instead. This week, however, the said expectations for medium and high carbon wire rod prices have been fulfilled, with some producers decreasing their price levels for sales offers to the local market. Meanwhile, the import price range of high carbon material in Turkey has this week been at €920-940/mt ($1,394-1,425/mt) C&F Turkey's southern ports.
For the time being, due to the suspension of purchasing activity by the Middle East and the dull demand levels in the international wire rod market, it is not possible to mention a definite export price range for the Turkish producers, who nowadays are maintaining a wait-and-see policy.