Turkish producers' offering prices for mesh quality wire rod are in the range of $960-980/mt FOB for June delivery. However, it would not be correct to say that the demand for the levels in question is high. These offers from the Turkish producers are thought to be excessive by purchasers in Europe and the US. Moreover, low-priced wire rod of CIS origin has found a very positive response in the Middle East. It is also observed that the Far East and Southeast Asian markets which saw an overall active performance in January and February are now once again dominated by Chinese companies.
In the Turkish domestic market, the EAFs' offer prices for 1006-1008 grade wire rod are in the region of $980-1,000/mt excluding VAT. However, end-users are reluctant to buy at these levels and so demand is not very high. Meanwhile, as a result of the weakness of the building sector and the lack of new projects in the market, wire mesh demand is moving at very low levels. This situation is adversely affecting the Turkish domestic wire rod market.
In the Italian domestic market, the price of mesh quality wire rod with 60-90 day deferred payment, excluding VAT, is at a level of €600/mt ($943/mt), while drawing quality wire rod is in the price range of €610-615/mt ($959-967/mt), excluding VAT. Prices are proceeding at higher levels when compared with March but demand is not the main reason for this upswing. On the contrary, demand is very poor. Italian producers are able to increase their prices thanks principally to the high prices in Turkey, Ukraine and Egypt.
The prices offered by producers of CIS origin in March for mesh quality wire rod were in the range of $925-930/mt FOB. The new prices of CIS origin material have not been announced yet but the common expectation in the market is that producers will up offer levels to $940-950/mt FOB Black Sea. However, market players believe that, whatever the extent of the increase, the new levels will be rejected by purchasers.
Wire rod prices are at very high levels in the northern European and Middle Eastern markets. There are also expectations of a possible price increase by producers of CIS origin, early in the current month. Meanwhile, consumption in the US is at moderate levels. Furthermore, the Far East and Southeast Asian markets, which performed very impressively until early March backed by lively export activity, have gone into a downturn as a result of the Chinese producers' success in penetrating the market once again. Chinese producers are offering prices for mesh quality wire rod in the region of $840-850/mt FOB. Due to the slight level of demand and the fact that offers from Chinese producers have started to be heard again in the market, purchasers are observed to have adopted a wait-and-see stance.