According to the experts, Turkiye's mesh quality wire rod exports are struggling to find buyers as competitors in other markets lower their prices.
The prices demanded by Turkish mills are at $650-660/mt FOB. According to market sources, it is rumored that a producer is offering a price of $645/mt FOB Izmir and will likely accept up to $635/mt FOB.
A European long steel distributor claimed that the gap between Turkish wire rod and rebar prices is particularly low.
It is reported that there is only $20/mt difference between the latest rebar offers and the highest wire rod offers, with wire rod at $640/mt FOB Turkiye.
Saying that there was a difference of $60-80/mt only 5-6 months ago, the European distributor said that under market pressure, the prices of rebar and wire rod were interestingly equalised.
Wire rod imported from Turkiye was announced at $645/mt FOB in November, down $75/mt month on month. Daily Turkish rebar prices have decreased by $52.50/mt in the last four weeks to $637.50/mt FOB Turkiye in November.
Sources explain that the reason why Turkish wire rod prices are still not attractive in export markets despite the strong price erosion is that cheaper wire rod can be procured from other markets, especially in Asia and Algeria.
A trader in Europe states that Algerian wire rod is negotiable at $600/mt FOB; He stated that it went down to the level of $530/mt FOB in Southeast Asia. Offers are $600/mt CIF for December shipment, six weeks from Antwerp.
Another trader said that the latest deals from Indonesia are closed at $599-$615/mt CFR Antwerp. He added that although Turkish suppliers have made offers at $645-650/mt FOB, no one is buying at this level.
Although Europe's Turkish quota for rebar was exhausted the day it was opened, the EU's non-scheduled quota for Turkish wire rod imports for the 4th quarter, which was 113,300 mt, still stands at 53,739 mt, according to the latest data.
Another trade source reported that there is a lot of cheap Asian wire rod from the Far East, saying that the European market is buying from Southeast Asia, and some markets in the Mediterranean are buying from China at the level of $600-610/mt CFR.
Traders claim that wire rod demand remains low, with buyers buying half.
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