The signs of softening in the Turkish domestic wire rod market have continued this week as well. Prices for 1006 grade wire rod are this week in a range of $1,330-1,380/mt ex-works, excluding VAT in the Turkish domestic market. The rumors that sales were concluded below the level of $1,250/mt, excluding VAT, with some mills' decreasing their price offers for the domestic market in the current week, have created the impression in the market that prices are moving on a downtrend. It is a source of interest whether low price offers from some mills will also be valid for short-term and small tonnage purchases. The effect on traders of this impression of a downtrend is observed in their efforts to sell off material held in stock.
In addition to the robust supplies in the Dubai market, it is heard that ex-China low price export offers are being accepted in the market. As regards large tonnage bookings, the price range of 1008 grade boron-added wire rod for August shipment is said to be varying at $1,050-1,100/mt C&F Dubai. It is thought that buyers are finding these prices plausible as they are not overly concerned with quality and as they are concluding large tonnage bookings.
It is reported that problems have been detected in wire rod samples from previously booked cargoes from China to Turkey and that, as a result, some end-users are not much interested in importing from China for now. As of this week, it is heard that ex-China 1008 grade boron-added wire rod is being offered at $1,200-1,250/mt CFR Turkey for September shipment. As regards the current week, since end-users are not able to foresee what the coming days will bring, they are acting hesitantly towards the offers in question.
It is reported that, due to the holiday period in Italy, which starts today (August 1) and will last for three weeks, the domestic price for 1008 grade wire rod is standing at the level of €800/mt delivered to customer. It is said that, due to the soft demand, end-users might conclude bookings at slightly lower prices than the level in question. The low price Chinese offers are not welcome this week either, due to the long shipment times involved.
As regards the Romanian domestic market, while low carbon wire rods were hovering at $1,230-1,280/mt ex-works last week, it is reported that the same grade wire rod in Ukraine varies in a range of $1,220-1,270/mt ex-works. Meanwhile, in Moldavia, domestic prices are heard to be standing at an average of $1,300/mt ex-works. And finally in the Russian domestic market, prices for the same grade wire rod are said to be found at higher levels compared to Ukraine and Moldavia.
Some mills are offering 1006 grade wire rod to the Turkish domestic market at slightly reduced levels, but it is seen that for now they are not applying the same policy with regard to high carbon wire rod. It is heard that existing high carbon wire rod list prices are continuing to vary in a range of $1,400-1,500$/mt for this week. While European producers are giving offers for S1 grade wire rod at €800-850/mt CFR Turkey for October shipment, the price range for short-time deliveries stands at €900/mt C&F Turkey.