It is heard that the price levels of some producers in the Turkish domestic market have this week slackened somewhat. Thus, the price levels in this market have this week been standing in the range of $1,330-1,380/mt ex-works for 5.5 mm 1006 grade material. However, it is heard that there were some purchases on July 24 at the level of $1,310/mt ex-works, excluding VAT. It seems that some producers have revised their prices since the entry of a new player to the market as mentioned in our last week's analysis.
In Italy and Spain, due to the summer holiday break which begins next Friday, the local prices in these countries have decreased slightly below the levels of last week. The wire rod prices in the local Spanish market have this week been in the range of €770-800/mt ex-works, excluding VAT, while the price levels of 1008 grade wire rods in Italy have been at €800/mt ex-works, excluding VAT, with wire rod levels in Italy showing a general softening trend compared to last week. It is observed that the demand for wire rod is considerably low in both countries.
End-users in Italy do not appear to be interested in Chinese origin boron-added 1008 grade wire rod offers. Since transportation times are too long, and also due to the slackening in local prices which means that domestic material is more and more attractive to end-users, no great interest has been shown in the Chinese offers in question, which we mentioned in our analysis of last week. It is also heard that the low-priced Chinese origin material is being offered to Israel as well.
In addition, it is reported that the price levels of wire rods in the local Romanian market have this week remained at $1,300/mt ex-works, excluding VAT. On the other hand, everyone is awaiting the decision Russia will take regarding its scrap export duty, and to see whether this possible measure will be reflected in wire rod prices.
It is heard that there have been offers for 1008 grade wire rods from Europe to Turkey for August shipments and for small tonnages at €830-860/mt CIF Istanbul. It is also reported that there have been export offers from Ukraine to Turkey for 1008 grade material at $1,260-1,290/mt CFR Turkey for August shipments.
Looking at the Turkish domestic market, with no change observed from last week's levels, the current prices of medium and high carbon wire rods are still at $1,400-1,500/mt ex-works, excluding VAT. It is heard that there are offers from Italy to Turkey for high carbon wire rods at €870-900/mt C&F Turkish southern ports for big tonnages and for September shipments.
While the Turkish producers with high stock levels and with full order books have continued to offer wire rods for export at $1,400-1,450/mt FOB, it is reported that the overall European markets are of the view that this price range is too high for import this week. It is observed that some traders have been maintaining a wait-and-see policy since they do not want to decrease their export offer price levels.
In the coming week, since Turkish producers will not be able to sell materials to Europe due to the approach of the holidays there, it will be interesting to see if these producers decide to decrease their price levels further or not.