It is heard that the price levels in the Turkish domestic wire rod market have this week been standing in the range of $1,330-1,395/mt ex-works for 5.5 mm 1006 grade material. The expectations concerning an increase in the lower side of this level ($1,330/mt) have not been fulfilled. It is expected that some producers, which have closed their sales in recent months, may announce new price lists to their customers next week. It is also heard that some buyers in this market have been planning to purchase small tonnages from Europe in order to break the high price levels of the Turkish producers' offers.
Meanwhile, Ukraine's mesh quality wire rod export offers are currently at price levels of $1,250-1,300/mt FOB Ukraine. SteelOrbis has learned that China's wire rod export offers to Turkey are currently at price levels of around $1,200/mt FOB China.
Turning to the southern European wire rod markets, a slight slackening has been observed due to the approach of the holidays in August. With the decrease in the demand level, the local wire rod prices in Spain and Italy are at €800/mt delivered to customer. It is heard that export quotations of mesh quality wire rods from China to Europe have been at $1,250-1,300/mt FOB China for September shipment.
In addition, it is reported that the price levels of wire rods in the local Romanian market, which were at higher levels last week, have this week been at $1,300/mt ex-works, excluding VAT, due to the slackening in Europe caused by the upcoming holidays. Also, in Moldova, where new local price levels are announced between the 15th and 20th of each month, current local levels are at $1,350-1,400/mt ex-works, excluding VAT.
On the other hand, the price level of mesh quality (1008) wire rods in the local Saudi Arabian market is at $1,380/mt delivered to customer, very close to local Turkish price levels. It is heard that order books has been filled for July in Saudi Arabia. Regarding this region, it is also reported that imports from Turkey are getting weaker due to the lower Chinese export offers.
Meanwhile, the export price level of the Turkish producers has this week been at $1,400/mt FOB, while the targeted price level was $1,450/mt FOB last week.
On the Turkish domestic market side, with no change observed from last week's levels, the price levels of medium and high carbon wire rods is currently at $1,400-1,500/mt ex-works, excluding VAT. It is heard that there are offers from Europe to Turkey for medium and high carbon wire rods at €900/mt CIF Turkish southern ports for July shipments, while they are at €950/mt CIF Turkish southern ports for September shipments.
The direction of the European wire rod markets, which have this week started to show increasing slackness, will become clearer with the market transactions of the coming weeks.