Prices have been maintaining their softening trend in Turkey's wire rod market during the current week. This week there has been more and more room for bargaining in determining the prices of wire rod purchases, depending on the grades, sizes and tonnages of the material to be purchased.
The biggest problem facing the market is still the high level of wire rod stocks held by end-users. Other important problems are the expectations of further price decreases and, against the background of the fluctuations in the TRY/$ exchange rate, the increasing obligation on end-users' to pay the money they owe. This week, Turkish mills and traders have been experiencing difficulties in giving export offers. The main reasons for this are the liquidity shortage seen in the global markets and the fluctuations in the €/$ exchange rate. In addition, end-users' unwillingness to purchase - since they are unable to sell off their stocks - makes the situation more complicated. No wire rod export bookings by Turkish mills were heard during this week.
In the Bulgarian domestic market, the mesh quality wire rod price is standing at BGN 880/mt ($569/mt) ex-mill, excluding VAT. Although wire rod inventory levels are not high, end-user demand is very low.
On the other hand, in the Spanish domestic market, the mesh quality wire rod price has decreased to an average level of €400/mt ($506/mt) delivered to customer, while the demand is still weak.
It is heard that in the Polish domestic market the mesh quality wire rod price is standing in an average range of $580-590/mt ex-mill, excluding VAT. Meanwhile, the mobility of the PLN/$ exchange rate and the variation of prices according to individual orders have had an impact on this market, similar to the situation in the Turkish domestic market. Just like in other wire rod markets, end-users in Poland are trying to keep their purchases down to the minimum levels needed to satisfy their daily requirements.
In the Saudi Arabian market, the anticipated new price list that we mentioned in the previous week's analysis, was announced this week. In the domestic market in question, the price of mesh quality wire rod is standing in an average range of SAR 2,900-3,000/mt ($754-801/mt) excluding VAT, on actual weight basis. It is expected that this price level will show further softening in the coming week. The inventory levels of end-users have again been at high levels this week.
With regards to the Dubai market, it is heard that domestic prices are at levels of $550-600/mt ex-mill. Export offers from China to this country for boron-added 1008 grade wire rod are standing at $520-530/mt CFR Dubai for November shipments. Although the price levels of import wire rod are quite attractive, end-users with high inventories will be unwilling to purchase before current stocks are sold off.