Business activity for wire rod in the Mediterranean region has remained livelier compared to rebar. Moreover, some suppliers are aiming to increase prices, following a quite long period of stable movement. However, whether the increases are accepted will largely depend on import scrap trends in Turkey, the situation in the European market after the holiday, and the price positions of Asian and more importantly Russian and Donbass-based suppliers, especially for buyers in Turkey and Africa.
The leading Egyptian mill has attempted a price increase for both rebar and wire rod to $570-575/mt FOB for October shipments, up from $560-565/mt FOB available earlier. One of the main Algerian exporters is officially offering $560/mt FOB for both products and for the same shipment term. However, these two mills offer the above prices mainly to the European, Middle Eastern and African markets, while for the United States levels $5-10/mt lower are achievable, traders say. In addition, another Algerian mill is offering wire rod at $544/mt FOB and rebar at $539/mt FOB to buyers from Europe and Africa. In fact, according to sources, some sales have lately been concluded to the Baltic region and the UK.
Asian wire rod suppliers are also present in the market with offers mainly standing at $520/mt FOB for Malaysian and Indonesian origins, while some traders have reported levels $10/mt higher. In Turkey, the CFR price from Malaysia is at $560/mt, up $5/mt from a couple of weeks ago, while in the EU Asian wire rod offers are estimated at around $565-570/mt CFR depending on the discharging port.
Wire rod offers from the GCC have been reported at $540-545/mt FOB, particularly from the UAE. Freight to European southern ports is estimated at around $35-40/mt for 15,000-20,000 mt lots. The cargoes are available for October shipments.
Russian suppliers are also in the market with wire rod offers. According to sources, Abinskiy SW has been offering $550/mt FOB officially, but the workable level is estimated at around $530-540/mt FOB, especially for the Israeli market. In Turkey, ex-Donbass wire rod offers have most recently been offered at $530-540/mt CFR. “The level is not great from the perspective of the local wire rod prices, but it might work for those [buyers] in need of a spot cargo,” a trader told SteelOrbis.