The price differences between the various regions in the Turkish domestic wire rod market this week expanded considerably for drawing quality material. The actual sales price of 1006 grade wire rod in the market is close to the level of $820/mt ex-works, excluding VAT. The main reason for the abovementioned price differences is as follows: since some producers have focused on their export shipments concluded in the period when prices were increasing and since their order books are full until November, they have been maintaining their production of high carbon and special wire rods, but have been trying to keep their low carbon wire rod production at a minimum level. It is mentioned that the producers in Iskenderun (who have been selling at current price lists until this week) may adjust their price levels for regular customers according to the regions in question.
On the demand side in the Turkish domestic wire rod market, it is heard that the end-users are uncertain about whether prices will get weaker or otherwise, and so they have been buying only the bare amounts they need to fulfill their orders.
Approaching the last week of Ramadan, there are two dominant expectations observed in Turkey. Firstly, it is expected that the slackening trend in prices will continue in reduced manner in the Turkish domestic market. Secondly, it is expected that, due to the increase in working hours with the conclusion of Ramadan, the market situation may improve with the possible reawakening of trading relations with the Middle East.
Meanwhile, the price level of 1008 grade wire rod has this week decreased to €620/mt ($896/mt) delivered to customer in the Italian domestic market. Demand is still at low levels in this country this week. It is heard that some producers in Italy have cut back on their output since they are not satisfied with the weakening price levels. It is mentioned in this market that prices may slacken slightly next week.
In Spain, it is heard that the price level of 1008 grade wire rod is at €610-620/mt ($882-896/mt) delivered to customer, in line with Italy. Demand is also at low levels in this country.
On the other hand, it is reported that the Turkish producers' export offers of 1008 grade material for Italy are at the range of $740-770/mt CFR Italy for late September shipment.
Regarding the Saudi Arabian domestic wire rod market, it is mentioned that, since the deliveries of imports (concluded in the period when price levels were increasing) have been continuing, stocks are still at high levels. It is reported that we may see an improvement (even if just slightly) in this domestic market with the conclusion of Ramadan.
On the other hand, it is reported that the price levels for 1008 grade wire rod in the local Bulgarian market have been at $759/mt ex-works excluding VAT, while the demand in this country is at low levels. High stock levels are also reported in this country.
In the Turkish domestic SG2 grade wire rod market, the price range is still at $1,260-1,500/mt ex-works excluding VAT, with no change seen compared to last week. It is observed that the import price levels for this grade material have been decreasing by smaller margins compared to the import prices for low carbon wire rods.