Wire rod market players in Turkey are trying to feel their way forward in these current days as we approach the middle of December. In particular, wire mesh producers are awaiting the tenders which will be held in the New Year. Although demand is still weak in the local market, Turkish producers are still trying to reflect the increases in scrap prices on to their wire rod prices.
According to the Istanbul Mineral and Metals Exporters' Association (IMMIB) data, in November Belgium was the leading buyer of bundles of steel wire and steel rope from Turkey. In Belgium, as the holidays approach mesh quality wire rod is being offered at €310-330/mt delivered to customer. It is expected that most market players in this country will start their holidays on December 20, returning to work two weeks later.
According to the same IMMIB data, the Netherlands stands out as the leading buyer of Turkey's nail exports in November. It is heard that low carbon wire rods are being offered in this country's local market at €320-330/mt delivered to customer. It is felt that producers in the Netherlands are trying to increase their wire rod prices, just like the situation in Turkey. However, these attempts are having trouble in gaining acceptance due to weak demand. In Germany this week, it is heard that there are difficulties in finding special grade wire rods due to the seriously reduced production rates locally. A similar holiday period to that in Belgium is also expected in Germany and the Netherlands.
On the export side in the Turkish wire rod market, things have remained quiet during the current week. Deliveries of previously concluded deals to the Far East are continuing; however, it seems difficult to talk about new export markets which will buy up new production. Some countries have been mentioned frequently this week as destinations for Turkey's wire rod exports, countries such as Singapore, Vietnam, Libya, US and some Latin America countries. It is expected that Turkish wire rod export offer volumes will increase as of next week due to the limited time left before the upcoming holiday period (generally starting from December 20): meanwhile, it is expected that the offers in question are likely to be for January shipments. In addition, it is thought that Turkish wire rod producers will avail of the holiday period in the US and Europe to carry out maintenance work on their production lines, to slow down their production or to produce stocks for the post-holiday period.