Mesh quality wire rod prices in the local Turkish market have been still showing variation according to the different regions this week. Last week's price levels in the regions - i.e. levels of $950/mt ex-works excluding VAT in the Marmara region, $1,180/mt ex-works excluding VAT in the Aegean Region and $1,310/mt ex-works excluding VAT in the Iskenderun region - are still being heard. Despite the expectation of some producers' price list updates in the market this week, no new price list has been announced so far. The main reasons for such expectation were the fact that the deliveries for the deals concluded at the levels of previous price lists have almost been fulfilled, and also because of producers' eagerness to narrow a price gap between themselves and thereby ensure the competition conditions in the Turkish wire rod market. According to another point of view, the new price lists are likely to be announced in early October.
While waiting the Southern Europe's return from holidays, the Turkish producers' offers to this region have started to appear this week. It is expected that the latest price level in this region will be shaped in couple of weeks. Meanwhile, the price level of low carbon wire rods in the Italian domestic market has been heard at €700/mt ex-works excluding VAT this week, while the price level of high carbon wire rods in the same market has been at €900/mt ex-works excluding VAT and slightly below. It is reported that the demand is currently weak in this market and buyers are following the wait-and-see policy. While it is mentioned that the Turkish producers are offering draw quality wire rods to Italy at average of $1,000/mt CFR Italy for September shipment. Meanwhile, offers of mesh quality material of the same origin have been heard at the prices below the abovementioned level.
It is heard that the price level of 1008 grade wire rod in the local Bulgarian market is at BGN 1,400-1,500/mt ($1,036-1,110/mt) ex-works, excluding VAT, whereas the Turkish producers are offering the same material to this market at $900/mt CFR Bulgaria. The demand level is weak in this market at the moment.
In general, it can be said that the Turkish producers have started to soften their export price levels this week.
It is heard that the price levels of low carbon wire rods in the Portuguese domestic market are at €710/mt ex-works excluding VAT in line with the price levels in Italian domestic market.
In the Turkish domestic market, it is mentioned that the producers have still been offering SG2 grade material at the price range of $1,260-1,500/mt ex-works excluding VAT and in case the new price lists will be announced, the price range in question may be shaped again. Meanwhile more suppliers from Europe were observed in the Turkish market for the same material due to the fact that the Southern Europe has returned from holidays. As a result of the increase in the number of suppliers, it is heard that the import price levels of the abovementioned grade material have softened to €850-870/mt CFR Turkey southern ports.
€1 = US$1.450