This week in the Turkish wire rod market most end-users have been maintaining their purchase activity, though buying only small tonnages. However, due to the fluctuation in the wire rod cost per item over the course of the current week, some end-users have further delayed their purchase activity. Besides, the fluctuations in the Turkish lira-US dollar exchange rate have been dominating the Turkish wire rod market. On the Turkish producers' side, it is expected that the balance between steel supply and demand may be shaped by the melting of end-users' high stock levels in the long term on the back of the current production rollbacks or the shift rotation policies.
It is heard that in the local Turkish wire rod market some producers have been offering S1 grade material at the price levels of $580-590/mt ex-works. No import offers from Europe for SG2 grade wire rods have been heard this week. Although it is mentioned that there have been offers from Moldova to Turkey for drawing quality (1006 grade) material at price levels of $600-610/mt CFR Turkey, no interest is being shown in these import offers since it is possible to see lower prices in the local Turkish market.
Looking at the Italian domestic wire rod market, mesh quality wire rods have this week been offered by the Italian producers at an average of €420/mt delivered to customer. However, it is heard this week that some Italian producers have halted their production for a short time, and that some have reduced their production and started to operate a shift rotation policy. On the other hand, last week's price levels have remained the same in the Spanish domestic market, still at €400/mt delivered to customer for mesh grade wire rods.
On the Bulgarian market side, it is heard that the price levels of mesh grade wire rods have this week been at BGN 880-920/mt ($574-600/mt), while demand in this country has reportedly been at low levels.
Meanwhile, it is said that mesh grade wire rods in Romania's domestic market have been at price levels of €400-500/mt from the producers. It is also heard in this country that some producers have reduced their production and have started to rotate shifts.
It is mentioned that there have been some export offers from the European producers to Romania for drawing quality wire rods at price levels of €450-460/mt CFR Romania for November shipments. For the same grade and with the same terms, it is heard that the Turkish producers' offers to Romania have this week been at around $500/mt CFR. It is reported that the overall export offers of some Turkish producers have lower than the abovementioned levels.
€1 = US$1.2765/mt