Turkish mills push up wire rod prices before holiday

Just days before the one-week-long Ramadan holiday in Turkey, Turkish mill Kardemir has increased its rebar sales prices and this price hike is also reflected in domestic wire rod sales prices. Thus, wire rod prices in the Turkish domestic market, excluding the Iskenderun market, have increased from last week's price range of TRY 1,540-1,580/mt ($737-757/mt + VAT) ex-works to TRY 1,570-1,630/mt ($752-780/mt + VAT) ex-works, inclusive of 18 percent VAT. However, for real buyers slightly lower offers are also available in the market.
 
Although many final product (steel mesh, nail, wire) manufacturers have been witnessing quiet demand during August, in line with the anticipation of better demand after the Ramadan holiday, they have increased their wire rod inventory levels. However, most wire rod buyers still seem to have postponed their wire rod bookings until after the holiday.
 
In the Turkish domestic market, wire rod buyers who have been in a hurry to deliver products are facing difficulties in obtaining supplies of some thick sizes. Buyers in Turkey's Iskenderun region, on the other hand, have been meeting their needs locally for a while.
 
In the southern European market, a key region for Turkish wire rod importers, Italian wire rod producers have started to return from the summer holiday this week. In this week's Italian domestic market, mesh quality wire rod offers are at €535-540/mt ($776-783/mt) for deliveries to customer. However, these offers are expected gain a clearer shape by September.
 
As for ex-southern Europe mesh quality wire rod offers, offers for late September shipments stand at €525-530/mt ($761-769/mt) FOB. Last week, ex-CIS low carbon wire rod offers to Turkey were standing at $765-770/mt CFR. However, it is reported this week that the CIS producers are replying late to incoming inquiries in order to assess the market situation in early September.
 
In the Far East, wire rod prices in the Vietnamese domestic market are maintaining their sideways trend. Accordingly, in the Vietnamese domestic market mesh quality wire rod prices have remained unchanged at VDN 16.1 million/mt ($774/mt) ex-works, on actual weight basis, including 10 percent VAT and all taxes. Wire rod demand in the country is sluggish.
 
In the meantime, in the Bulgarian domestic long steel market this week, stockists' mesh quality wire rod prices stand at BGN 1,045-1,050/mt ($771-774/mt) CPT on actual weight basis, exclusive of 20 percent VAT. Since it is expected that the positive mood which is likely to be seen in the Middle East and in Turkey after the Ramadan holiday may have a knock-on effect also on wire rod demand in Bulgaria, prices in the country have slightly increased this week.
 
Summing up the situation in the international wire rod market, demand is predicted to rebound in Turkey and in the Middle East after the holiday, while wire rod sales prices are expected to become clearer in southern Europe, with the return of all Italian market players from the summer holiday. As a result, it is yet to be seen what buyers' attitude will be regarding new wire rod purchases in September and whether their bookings will satisfy the expectations.