Wire rod buyers delay new purchases in international markets

In the Turkish domestic wire rod market, the price declines seen last week have continued also this week.
 
Wire rod prices in the local Turkish market, excluding the Iskenderun market, which were at TRY 1,550-1,600/mt ex-works -inclusive of VAT - last week, have declined to TRY 1,520-1,560/mt (approx. $750-770/mt + VAT) ex-works as of today. Expecting that wire rod prices may further soften in the coming days, many Turkish buyers have been delaying their new purchases. As next week is the last week in October, it is thought that some Turkish buyers may increase their wire rod inventories.
 
In early October, Turkish buyers were focused on ex-Europe wire rod offers, enjoying the weakness of the euro against the US dollar. Howeever, following the wire rod price declines seen in the Turkish domestic market, buyers are now heading to their local market. In the Turkish domestic wire rod market this month, steel producers have started to make exclusive offers to buyers and this indicates that the bargaining power of buyers is now stronger.
 
As for wire rod import offers to Turkey, ex-Ukraine low carbon wire rod offers stand at $685-690/mt FOB, for November shipments.
 
In the international markets, after decreases seen also in wire rod prices along with other finished steel product prices, the wait-and-see stance adopted by buyers caused a demand contraction in Turkish mills' major export markets. SteelOrbis has learned that in the past week Turkish offers to India for low carbon wire rod were standing at $735-740/mt CFR, while Turkish low carbon wire rod offers to Brazil are at $720-725/mt CFR this week, both for late October and November shipments.
 
In the meantime, mesh quality wire rod prices in the Bulgarian domestic market have regressed by BGN 30/mt ($21/mt) as compared to last week to BGN 1,060-1,070/mt ($746-754/mt). Wire rod demand is quiet in Bulgaria this week. In the Italian domestic market, on the other hand, drawing quality wire rod prices stand at €535-540/mt ($738-744/mt) for deliveries to customer, while demand is sluggish.