The quietness which has been evident in the Turkish
wire rod market for a while now has prevailed again in the past week. The weak final product (steel mesh, wire, nail) demand in the Turkish market has led final product manufacturers to remain cautious about concluding new
wire rod transactions. Due to local
wire rod mills' ongoing maintenance works, as well as certain management problems, buyers in
Turkey's Marmara region have directed their inquiries to other regions in
Turkey. On the other hand, following the widening of the gap between
wire rod prices in
Turkey's Iskenderun region and those in other regions, some buyers from the Iskenderun region have preferred to conclude
wire rod bookings from other regions of the country.
On
Turkey's export side, this week there has been a significant increase in the number of
wire rod inquiries to Turkish mills. However, concerns over a possible price softening means that buyers are not sure about whether they should move to convert these inquiries into actual transactions.
In the Balkans, due to the national holiday in
Bulgaria that starts today, March 3, buyers in the country are expected to return to the market next week. In the Serbian market, the slowdown in construction projects due to cold winter conditions means that final product manufacturers (steel mesh, nail) are reluctant to conclude new purchases. In February, drawing quality
wire rod prices in
Serbia were standing at €550-560/mt ($744-758/mt - based on exchange rate in February) CPT due to tepid demand. In March,
wire rod prices in the Serbian domestic market are foreseen to show a slight softening.
On the other hand, this week Spanish producers' mesh quality
wire rod offers are currently standing at €515-520/mt ($712-719/mt) FOB on actual weight basis for late March and April shipments. Since Spanish steel producers have concluded some
wire rod transactions to
Algeria, as well as to the
UK and Ireland, their export offers are now slightly above Turkish mills' export offers. In the
UK, the
wire rod market is following a flat but firm trend.
In Vietnam, the government's tight monetary policy has caused construction projects in the country to slow down. Domestic
wire rod prices in Vietnam have softened by $10/mt during the past week.
Generally speaking, while Turkish mills are seeking to increase their export offer prices, buyers' hesitation in concluding new purchases appears to be a decisive factor in whether the mills achieve their aims.