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. With summer coming, it is heard that the traders (who previously purchased material at lower prices) have been offering at lower levels compared to the producers' prices in order to meet local demand. Also, it is said that buyers are experiencing financial difficulties as wire rod prices have this year increased beyond expectations and as the banks have not been willing to follow with the necessary credits. A local producer has this week opened its sales; however, the producer has offered the same price range as the abovementioned; thus, no price change has been observed in the market. In the coming week, prices in the Turkish domestic wire rod market may be shaped according to the strategies adopted by the market players.
It is heard that this week there has been a lot of export offers to Turkey. A Spanish trader's offer for 1008 grade material was in the price range of $1,250-1,300/mt C&F Turkey for August shipments. A Chinese origin offer was also heard for the same material (but boron-added) to Turkey in the price range of $1,170-1,200/mt, with the same terms as the above offer. It seems that the traders' influence on the local Turkish market has been increasing.
Turning to the southern European wire rod markets, a slight slackening has also been observed this week due to the approach of the holidays in August. The local wire rod prices in Italy are still at €800/mt delivered to customer. Due to the lassitude in the market caused by the upcoming holidays, producers are busy with their overhauling works, while buyers have temporarily delayed their purchases. Thus, the price level in the local Italian market has remained unchanged compared to last week. Although it is known that there are still Chinese origin boron-added mesh quality wire rod offers below the price level of €800/mt C&F Italy for October shipments, it is heard that there is no great interest in the offers in question since nobody is sure about what level the international wire rod prices will be at in October.
In addition, it is reported that the price levels of wire rods in the local Romanian market have this week been at $1,300/mt ex-works, excluding VAT. It is reported that the local demand is not very strong and that the order books have not yet been filled for the current and the coming months. There have been offers from Moldova to Romania for 1008 grade material at the price range of $1,350-1,380/mt DAF for July shipments. There have also been Chinese origin offers to this country for boron-added 1008 grade wire rods at $1,200/mt FOB China for September shipments. It is heard that this week there has been no price change in the Russian domestic market.
Meanwhile, although it is heard that some Turkish producers have been offering wire rod for export at $1,500/mt FOB, the general price range is actually $1,400-1,450/mt FOB Turkey. It is reported that a few confirmed responses have been received for the abovementioned price range, which is lower compared to the price level in the Turkish producers' minds. More responses are expected and it will become clear in the upcoming weeks whether the abovementioned export offers will be accepted or otherwise.
Looking at the Turkish domestic market, with no change observed from last week's levels, the current price levels of medium and high carbon wire rods are still 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 €900-930/mt CIF Turkish southern ports for September shipments, while an Italian producer's offer for SG2 grade is at €920-950/mt CIF Turkish southern ports for October shipments.
In the upcoming weeks, we will see whether the Turkish producers will announce new price lists, and we will also see how the recently opened sales by the local Turkish producer will affect prices. It will also be interesting to see if the signs of slackening in the European markets will continue for another while, and if the Turkish producers will take measures in response to traders' prices, which are lower than their own price levels.