Wire rod offers in the Mediterranean region, namely for the Turkish, European and African markets, have remained numerous, though relatively stable over the past week. Competition remains tight and buyers, since they have a wider choice, are putting some pressure on suppliers for discounts. Overall, offers from North African mills are considered to be most attractive due to short lead times, especially in Europe, while in Turkey ex-Malaysia prices are also being evaluated. Turkey is squeezed in terms of exports between high production costs and competitors’ lower offers, while Russian and Donbass-based suppliers continue working with markets ready to accept toxic steel origins though at a discount.
In North Africa, Egyptian mills seem to have maintained their general offers for wire rod at $565-575/mt FOB depending on the supplier and the destination. In Turkey, most sources have reported offers at $580/mt CFR and one at $560/mt CFR which is on the low side and has not been confirmed by the time of publication.
One Algerian mill has remained at $560/mt FOB for both rebar and wire rod, though lower levels are reported to be available for US buyers. Another producer in Algeria is attempting to inch up its offers by a couple of dollars to $547/mt for wire rod and $541/mt for rebar, both on FOB basis and for November shipments.
Asian suppliers have largely maintained their price positions in the wire rod markets in Turkey, the EU and North Africa. For Turkey, offers from Malaysia, which is a duty-free origin, are reported at $565-570/mt CFR Iskenderun, but buyers believe they can push for $555-560/mt CFR with firm bids. For other markets, ex-Indonesia offers are at $520-525/mt FOB.
Turkey is still offering wire rod for export at $590/mt FOB, since high scrap costs have been limiting Turkish mills’ room for price adjustments for a while now. In the domestic market, ex-works offers are at $580-615/mt ex-works, down $10/mt on the lower end over the past week.
Initial ex-Russia wire rod offers are at $530-550/mt FOB, down $10/mt over the past week, while some buyers from Africa have reported the workable levels for this origin are not higher than $520-530/mt FOB, particularly in Israel. In Turkey, import wire rod offers from Donbass and Russia have been reported at $530-540/mt CFR for spot cargoes, in line with last week, but with no takers so far.