Turkish wire rod producers have been offering mesh quality wire rods to their domestic market at $1,150-1,310/mt ex-works on actual weight basis excluding VAT. The main reason behind this wide price gap in the local Turkish market is the fact that some producers have been following in the tracks of last week's price downtrend, whereas other producers have not been willing to reduce their price levels this week due to the large amount of export deals they have concluded. End-users in the domestic market are waiting with great curiosity to see how long this general situation will continue. As of today, it is heard that there are some purchases of the same grade wire rods at price levels of below $1,150/mt.
On the traders' side, it is mentioned that some traders, considering the weakening trend of wire rod prices, are getting ready to offering at low prices in order to reduce current stock levels. However, some other traders are said to be planning to wait further before selling material which they had bought with the assistance of bank loans when price levels were increasing. It is reported that these traders will put their material on the market as soon as price levels enter an upward trend.
This week, export offers from China to Dubai at low price levels were still seen. Although it is heard that there have been big-tonnage purchases of 1008 grade boron-added wire rods at an average price level of $1,000/mt CFR Dubai for August shipment, it is reported that there have been some export offers from Ukraine to the region in question at the range of $1,100-1,200/mt CFR Dubai.
As the price levels of 1008 grade wire rods in the Romanian domestic market have this week been at $1,215-1,240/mt ex-works, excluding VAT, it is widely thought in the market that the price levels are on a downtrend and that, due to the low demand level, the downtrend in question will continue for a while. It is heard that there have been export offers for the same grade material from Moldova at an average of $1,230/mt FOB, whereas export offers from Ukraine have been at $1,100-1,150/mt FOB Ukraine.
In the Turkish domestic market, the medium and high carbon material has this week been in a range of $1,380-1,420/mt ex-works, excluding VAT. In parallel to the sudden price slackening in the local market, it is observed that import offers to Turkey have also shown a slight softening trend. Although it is reported that import offers to Turkey for SG2 grade material are being given at €900/mt ($1,330/mt) CFR Turkey's southern ports, it is thought in the market that there may be some purchases at lower levels in the coming days compared to the abovementioned price. Also, it is heard that there have been a small amount of high carbon wire rod import offers at lower prices compared to the above level.
With the Turkish producers abstaining from giving export offers at tangible price levels, it is said that it will be possible to talk about a definite price level as of the end of this month when Europe returns to the market.