This week some international wire rod markets like Turkey were on an uptrend while some moved in the opposite direction.
Vietnam is one of the markets that has indicated a downward price trend in the current week. Mesh-making grade wire rod prices in the Vietnamese market are currently at VDN 16.8 million/mt ($814/mt) including 10 percent VAT and all other taxes, ex-works, and on actual weight basis. The major reason that the domestic market for wire rod in Vietnam is softening is the tight monetary policy of the government added to the approaching rainy season.
The domestic market of Romania is also facing declining wire rod prices, as a result of narrowing demand. Mesh-making grade wire rod prices have fallen by €15-20/mt from April prices, dropping down to €485-490/mt ex-works on actual weight basis.
However, the wire rod market has ben moving in an upward direction in Bulgaria, similar to the market in Turkey. In the domestic Bulgarian market, mesh-making grade wire rod prices offered by stockists are at BGN 960-980/mt CPT ($725-740/mt) on actual weight basis, excluding 20 percent VAT. The price levels indicate an increase of BGN 15-20/mt ($11-15/mt) over last week.
In the Italian domestic market, the price trend for wire rod is stable. Mesh-making grade wire rod offers on actual weight basis continue to stand at €520-530/mt delivered to customer. Domestic buyers in Italy are purchasing in limited quantities, while demand for drawing quality wire rod is more active compared to that for mesh-making grade wire rod.
In Portugal, following the agreement with the IMF on the $78 billion loan package, the attention is back on the European markets again. The question now is whether this agreement will have a positive impact on steel exports by Spain, a major trading partner of Portugal.
In the South Asia region, the interest of Turkish wire rod producers in India continues. This week Turkish producers' drawing quality wire rod offers to India were at $770-780/mt CFR basis on actual weight basis, for June shipments. Yet, offers by CIS producers that are slightly below the Turkish offers seem to be attracting the attention of Indian buyers.
Summing up, while some wire rod buyers in the international market prefer to wait and see before buying, other buyers are tending to build some inventories due to concerns that further price increases may be seen in the wire rod markets.