The softening trend in the Turkish domestic wire rod market, just like the markets for so many other products, has also been maintaining a softening trend this week. End-users are not able to predict for how long the prices will continue to soften. Thus, they are still hesitating to make purchases. Demand in this market is being affected by speculation about the ultimate bottom point of wire rod prices in Turkey, and also by the possible losses market players fear they may incur if they buy right now instead of waiting further. Another factor that affects demand is the wide variation seen in prices. Meanwhile, faced with end-users' hesitancy, Turkish producers and traders have been revising their price levels with great frequency in a bid to waken the current dormant demand.
In the local Turkish wire rod market, there have been a lot of import offers for all wire rod grades. It is heard that drawing quality (1006 grade) wire rod is being offered from Moldova to Turkey at around the level of $700/mt CFR Turkey. However, this offer is not attracting any interest since the local prices are at considerably lower levels.
In addition, as SteelOrbis had expected in last week's report, import S1 grade wire rods offers from Europe have this week registered a softening trend. The wire rod offers from Europe to Turkey for S1 grade material have decreased to €820/mt ($1,103/mt) CFR Turkey for late October shipment.
In Italy, with mesh quality wire rod prices hovering at slightly below €450/mt ($605/mt) delivered to customer, market players expect that prices for this material will continue to soften a bit further in this market. It is heard that Italian producers' mesh quality wire rod stocks have this week been very high, with their drawing quality and wire mesh stocks reported to be at comparatively lower levels.
In the Bulgarian market, as it is heard that mesh quality wire rod prices are at $662/mt ex-works excluding VAT, no export offer from Turkish producers to this country has been heard this week.
The new price levels due to be announced in Saudi Arabia on Saturday, October 18, are expected to mark a downward adjustment. On the demand side in this market, it is reported that the end-users are not willing to buy due to their high stock levels.