Wire rod prices continue to rise in the Turkish and European markets. The Turkish producers have been offering mesh quality wire rods for export at the price level of $720-730/mt FOB. The price level of the same product in the Turkish domestic market has been at $710-720 ex-works, excluding VAT. On the other hand, SAE 1006 drawing quality wire rod was offered for export from Turkey last week at $740-750/mt, while the price range of the same product in Turkey's domestic market was at the level of $720-730/mt, excluding VAT, in the period in question.
It is predicted that the Turkish wire rod market will be shaped in the first quarter of 2008 by the demand coming from the European and the US markets. It could be said that the previously predicted slowdown in the increase rate of Turkish producer prices will not materialize in January. On the other hand, the overall decrease in US wire rod consumption, the high freight rates and the weakening of wire rod demand in the European market have all been making life very hard for the Turkish producers.