The wire rod market, which was expected to become active at the end of May due to the new Chinese export tax, has not shown much revival on the back of high stock levels.
CIS origin July production mesh quality wire rods for export are at around $560/mt FOB Black Sea. The price has been kept at the same level for two months now. Small cargo sales have been concluded at around this level. As a result, the CIS wire rod market is calm.
Turkish producers are offering mesh quality wire rods for export at around $570-580/mt FOB. Currently, the Turkish wire rod market is very stagnant due to the weak demand from both the US and EU.
The wire rod market in southern Europe is also slow. The stock levels especially in Italy and Spain are very high due to the purchases completed from these domestic markets along with the purchases of previously low-priced Chinese goods. Delivered to warehouse mesh quality wire rods in Spain are at €460-480/mt ($619-646/mt).
The wire rod market is not expected to show a rapid improvement in the short term. However, it is obvious that the Chinese effect is no longer felt both in Europe and the Middle East. The wire rod market may become active after stock levels have been reduced.