Looking at the Turkish domestic wire rod market this week, the upward price trend has been continuing, with prices reaching a range of $1,260-1,350/mt ex-works, excluding VAT. Under the effect of the increased rebar prices, in June local Turkish producers have been inclined to switch their production lines to rebar and billet, thereby reducing their wire rod sales. Having filled their order books for July, the Turkish wire rod producers have already started to make offers for August. Not so many offers are currently being heard as the producers who have regularly been exporting from Turkey to Europe are maintaining a wait-and-see policy for the time being.
Meanwhile, it is heard that this week's Ukrainian offers have been at a level of $1,300/mt FOB.
On the European side, wire rod prices in Spain have been at €820/mt ($1,289/mt) delivered to customer. It is observed that the local market in Spain is active at the current time and prices in this market are expected to increase. It is also heard that there have been Chinese offers of 5.5 mm low carbon wire rods at the price level of €810/mt ($1,274/mt) CIF Spain.
Wire rod prices in the Italian domestic market have this week been heard at €830/mt ($1,305/mt) delivered to customer. It is heard that the order books for July have almost been filled up. It is expected that the market players' negotiations will come an end next Friday (July 4) and that a new price range will be determined.
Chinese origin wire rods have started to be offered to the Mediterranean markets in spite of the export duty. Indeed, it is observed that Chinese firms have been very competitive in the European markets. In addition, it is reported that Baosteel's new iron ore agreement (up by an average of 85 percent year on year) have not affected steel products prices yet. However, once this happens, prices may increase by a certain margin.
Wire rod prices in the Mediterranean, which are on an upward trend for now, can expect to be influenced by certain factors: namely, by whether the Turkish producers choose to sell domestically or in Europe, and also by the new prices in the European market which have been coming under pressure from the Chinese.