This week, a further softening has been observed in the mesh quality wire rod sales price levels of some mills in the Turkish domestic market. Mills in Iskenderun continue to deliver orders which were booked in the last month, while end-users in the domestic market prefer to maintain a wait-and-see stance as they feel unable to predict the direction the market will follow in the future. Meanwhile, with the stability expected to be seen in the local market as prices decrease, it is thought that end-users may accelerate their purchasing activities.
Due to the approaching religious holiday, domestic market demand in Turkey has continued to be quite slack over the current week. It is heard that some end-users are thinking of importing wire rod from Europe and also that Chinese export offers to Turkey have become frequent this week. Italian mills are attracting attention through the quality of material offered, whereas the Chinese mills are offering more favorable prices. However, recently end-users in the Turkish domestic market have been considering current offers since they are unsure how far market prices will drop.
In general, end-users' main problem is the abundant stock they have in hand. End-users in Turkey are not the only ones affected by this problem, but also end-users in the Middle Eastern and European markets.
In Dubai, it is heard that 6.5 mm 1008 grade wire rod prices in the domestic market are standing at the level of $750/mt ex-works, excluding VAT. It is also heard that the stocks of end-users in Dubai are at very high levels, that deliveries of bookings concluded at high prices are continuing, with some deliveries piled up at Dubai ports. Meanwhile, offers from China to Dubai for 1008 grade boron-added wire rod are in a range of $800-860/mt CFR Dubai.
On the other hand, showing some softening this week, in the Italian domestic market 1008 grade wire rod prices are currently standing at €600/mt ($875/mt) delivered to customer. In addition, the Spanish domestic market is moving in parallel with the Italian domestic market, and 1008 grade wire rod prices in the Spanish market are also at the level of 600€/mt ($875/mt). Meanwhile, it is heard that inventory levels in Spain are currently very high.
With regard to the Bulgarian domestic market, showing a softening trend, this week's domestic market prices for large tonnages are heard at the level of $854/mt ex-works, excluding VAT. Demand is on a sluggish trend in this region and stocks are at normal levels.
Turning to the Turkish market, domestic prices for SG2 grade wire rod are maintaining levels of $1,260-1,500/mt ex-works, excluding VAT, while it is heard that Turkish import offers are standing at €850/mt ($1,241/mt) CFR Turkish southern ports. Meanwhile, it is also said that end-users' SG2 grade wire rod stocks in the Turkish domestic market are at high levels.