The downturn in the import scrap segment, cautious market sentiment before the elections in Turkey, and the generally low long steel demand have pushed down wire rod prices in Turkey. Moreover, Asian suppliers have become rather aggressive due to the price collapse in China and there is still some room for them to decrease their offers further for Turkish customers.
In the Turkish domestic market, mills’ wire rod prices are mainly at $680-710/mt ex-works, down $30/mt over the past fortnight. However, levels of $670-690/mt ex-works are currently considered workable.
The most aggressive import offers have been reported from China at around $600-610/mt CFR, which is still not workable given the 30 percent import tax. The offers from Russia and Donbass are the next closest at $620-630/mt CFR, but again with no takers. Malaysia has dropped its offers to Turkey by $35-40/mt to $640-650/mt CFR and Egypt, as another duty-free supplier, is now offering at $670-675/mt CFR, down[JF1] $25-30/mt over the past two weeks. Moreover, local customers in Turkey count on another price decrease for wire rod from Asia, given the aggressive moves made by China in the region.