It is observed that sales prices are seeing a slight softening trend in the Turkish domestic wire rod market after the holiday period. It is seen that this week some mills have revised their price lists under the new circumstances and have decreased their sales offers, while others have continued to give offers at the same levels as before the holiday. Also it is heard that the end-users who need to deliver orders have continued to purchase just to satisfy their needs; on the other hand, the end-users whose stocks are at high levels have this week continued to delay their purchases.
This week, it is heard that the Turkish mills have given export offers mostly to Europe. Italy will enter its Christmas-New Year holiday period on Monday, December 22, which will last for three weeks. As the iron and steel market in this country will be "frozen" over this long holiday period, it is said that, for this reason, last week (which was a holiday week in Turkey) some export bookings were concluded from Turkey to the region in question. It is heard that for a large tonnage of 1008 grade (mesh quality) wire rod the booking level was at $460/mt CFR Italy for January shipment. Meanwhile, this week, a booking has been concluded from Turkey to Saudi Arabia for 2,000 mt of 5.5 mm 1006 grade (drawing quality) wire rod at the level of $550/mt CFR Saudi Arabia for January shipment.
As we analyze the local situation of markets in which bookings have been concluded, this week in the Italian market, offers for mesh quality wire rod are at the level of €430/mt ($613/mt) for delivery to customer, excluding VAT, and this offer has been accepted as its price level was judged to be reasonable. This week, demand is on a slack trend against the background of the approaching holiday. Also, it is heard that export offers from Russia and Ukraine to the Italian market have become more frequent this week.
Although the Saudi Arabian domestic market is characterized by an anxious atmosphere due to economic uncertainty, it is expected that the country's government may announce a strong budget and ease the concerns of end-users as regards the long term. Meanwhile, it is reported that some end-users may accelerate their purchases in January.
Price offers are made with product range rather than product quality in mind in the Saudi Arabian domestic market. In this market, it is said that the offer levels of the producers for 5.5-6 mm wire rod are at the level of SAR 2,430/mt ($648/mt) for 45-day deferred payment, whereas the offers for 7-8 mm wire rod are at the level of SAR 2,265/mt ($604/mt). All prices are including five percent VAT, ex-works, and on actual weight basis.
This week, prices of mesh quality wire rod in the Spanish market are heard to be in the range of €380-400/mt ($542-571/mt) for delivery to customer. Sluggishness has been predominating in terms of the demand in the Spanish domestic market due to the next week's holiday period.
As for the Bulgarian domestic market, it is heard that mesh quality wire rod is hovering in the range of 800-810 BGN/mt ($583-591/mt) ex-works while demand is slack.
Rumors are circulating that the Turkish mills may be in a search of other wire rod markets with the commencement of the Christmas-New Year holiday period which will start next week in southern Europe. This week, it seems that the most important market with regard to exports has been the Saudi Arabian market. Although there are different forecasts relating to the wire rod markets after January, in order to better foresee future developments in the international markets, we should first await the conclusion of the holiday period in Europe.