The supply problem seen for a while for thin gauge wire rod in the Turkish wire rod market has continued to be seen this week also. On the other hand, prices of larger diameter wire rod are under the influence of the softening trend seen in Turkish domestic rebar prices.
Turkish wire rod producers seem to have gained some competitive power in the international wire rod market against European producers as a result of the €/$ exchange rate increasing to 1.38. Buyers in the international market, in the meantime, are on hold for new bookings because of the continuous downtrend of wire rod export offers.
Italy, as an important wire rod import source for Turkey, has been offering mesh making grade wire rod for export this week at €515-520/mt FOB (approx $708-714/mt FOB) for shipment at the end of October. Italy has been making agressive offers to the Balkan states for some time, and now they are observed to have adopted the same policy in the general international wire rod market.
Mesh making quality wire rod export offers from Turkey this week regressed to $700-710/mt FOB levels. Buyers, in the meantime, are maintaining a strong stance in terms of negotiations.
Contrary to the international wire rod markets, in Bulgaria wire rod prices increased last week. However, this week prices here have been corrected back to BGN 1,090-1,100/mt ($770-777/mt) CPT, in line with the international market. Also this week, offers of low carbon wire rod ex-CIS to Romania have been given at €530-535/mt ($731-738/mt) CPT.
Starting from raw materials, the softening observed in almost all steel product groups is expected to change direction once the bottom is seen by buyers. However, for the moment there seems to be some more time needed before the market starts to recover.