Against the background of the fluctuating trend of prices in the Turkish domestic wire rod market, end-users cannot foresee the direction of the market in the short term; thus, it is observed that the number of import inquiries made by them has increased.
There is no significant change observed in wire rod export offers given from Turkey approaching the end of the week. However, in the coming week, when all producers will announce July prices in the international market, we will be better able to see whether the current offers at the levels of $480-490/mt FOB will gain acceptance. The Middle Eastern and Far Eastern markets have continued to maintain their popularity as export markets for Turkey. Meanwhile, it is heard that a low carbon wire rod booking from Turkey to Greece was this week concluded in the range of $490-500/mt CFR for low tonnage.
In addition, it is reported that wire rod demand from the Far East to Turkey, in particular from the Philippines, Malaysia and Singapore, has been indicating strength during the current week. However, it should be taken into consideration that exports from Turkey to this region could be affected by possible changes in China's export strategy in the coming period.
In the Romanian domestic market wire rod prices are this week standing in the average range of €320-330/mt ($451-465/mt) ex-works excluding VAT; meanwhile, some Romanian domestic mills are expected to announce their new price lists before the end of the week. It is heard that CIS origin mesh quality wire rod offers given to Romania this week are at the level of €310-320/mt ($437-451/mt) DAF for July shipments. Also, offers given from Italy to Romania for the same grade and delivery terms are at €310-320/mt FOB. It is expected that the market response to import offers will depend on domestic producers' new prices.
Mesh quality wire rod export offers given from southern Europe to the Mediterranean region are at the level of €320/mt ($451/mt) FOB for July shipment - further evidence that demand in southern Europe is continuing to move on a sluggish trend. However, before deciding to import, Turkish end-users should consider that most southern European market players will begin their holidays in early August; in addition, lead times from southern Europe to Turkey should be taken into account.