Sluggishness reigns in international wire rod markets in August

Thursday, 04 August 2011 15:20:04 (GMT+3)   |  
       

With the start of the month of August, the influence of Ramadan has begun to be felt in the Turkish and Middle Eastern markets. In the Turkish domestic market, wire rod prices have softened slightly while the negotiation power of real buyers has increased. In the meantime, during Ramadan, the number of working hours in many companies have been reduced, resulting in a slowdown in final product sales.
 
Just like Middle Eastern buyers, Turkish buyers have continued to assess import offers with arrival dates in September. Ex-CIS low carbon wire rod exports offers have remained unchanged as compared to last week at $745-750/mt FOB, for September shipments.
 
In the Italian market, most buyers are expected to be absent during August due to the summer holiday, while it is expected that prices may see an update by September.
 
 This week, Turkey's mesh quality wire rod export offers have decreased by $10/mt over the previous week, declining to $740-750/mt FOB. Buyers in the international markets, on the other hand, are taking their time to assess import offers, due to the general quietness of the markets.
 
The Far Eastern wire rod markets are also quiet. In line with the tepid demand in the Vietnamese market, local mesh quality wire rod prices in Vietnam have regressed to VND 16.1 million/mt ($783/mt) ex-works, including 10 percent VAT and all taxes.
 
On the other hand, in Sri Lanka aggressive Indian offers dominate the country's wire rod market, which are far below offers given from Turkey and Indonesia. Indonesian mesh quality wire rod offers to Sri Lanka stand at the price range of $785-790/mt CFR, while ex-Turkey offers for this country are at $805-810/mt CFR, both for September shipments. However, Indian mesh quality wire rod offers to Sri Lanka are at $745-755/mt CIF Colombo.
 
While Latin American as well as the West and Central African markets are still among Turkey's wire rod export markets, it is seems difficult for these markets to absorb Turkey's wire rod production volume.

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