Near Ramadan, Turkish wire rod market has been characterized by panic mood in this week. It is heard that no big trouble has been experienced this week regarding wire rod supplies. Competitive price levels effect is being observed in the local Turkish market in both wire rod and finished steel market sales prices. Due to the possible slowdown in finished steel demand in Ramadan in Turkey, some wire rod market players are trying to sell their materials in this week.
While Turkish producers' wire rod export offers are still at $500-510/mt FOB in this week, some producers are still trying to keep their export offers above these levels.
In these days, near to the end of August, Turkish producers' interest to US market is still there. While some Turkish producers have tried to increase their wire rod export offer levels to US, succeeded and completed some deals, it is observed that some other producers are deliberate due to their target high price levels , they are even waiting furthermore to reach these high prices.
An important development for Turkish deals to Far East markets is that the softening in the local Chinese market have started to be reflected (even slightly) to export offers. With Chinese export levels for boron added wire rods have this week reduced to $560/mt FOB from the previous level of $600/mt (there is nine percent tax rebate for boron added wire rod exports), an increase in Chinese effect in the international wire rod markets will not be surprise.
On the other hand, it is heard that there are price inquiries from some export markets beside Far East or US for Turkish wire rod such as Ethiopia.
Turkish producers' attempt to rise wire rod export offer price levels as of August is also showing an influence on ex-CIS wire rod export offers. Thus, ex-CIS export offers for mesh quality wire rods have currently increased to $480-490/mt FOB.
It should be waited furthermore to see the certain wire rod price levels in Europe as some of Europe will return to markets from holiday as of next week and the rest will return in the end of the month. However, it is mentioned that the European wire rod producers will also likely try to keep their prices at slightly higher levels due to the activity seen in the international wire rod markets in this holiday period.