The Turkish wire rod market has started September in a somewhat troubled mood. In particular, wire rod buyers in the local market have adopted a wait-and-see stance as regards new purchases due to the slowdown in activity in the finished steel markets during Ramadan. Although Turkish wire rod buyers have continued to send price inquiries to producers, for the time being just a few firms are buying wire rods.
Due to some technical problems regarding the production process in Turkey's southern region this week, it is observed that there is some trouble as regards the production of certain wire rod qualities, excepting low carbon wire rods. Thus, there are certain delays in delivering some previous orders. It is expected that the technical problem will be resolved and that production of the affected wire rod qualities, currently absent, will be resumed by mid-September. In addition, it should be said that trading activities from Turkey's southern region to the Middle East have slowed down somewhat in Ramadan. Also, in general, the volume of price inquiries given from the Middle East to the Turkish producers has registered a significant decrease.
Looking at Turkey's markets for its wire rod exports, market players in the Far East, who have started to see China as an alternative source of imports, have this week started to adopt a wait-and-see policy as regards wire rod purchase activity. Although it is heard that there are some price inquiries to Turkey from some countries such as Thailand, market players in the Far East are in general diffident towards Turkish export offers given the slackening in Chinese boron-added wire rod export prices. When comparing China with Turkey, shorter lead times from China to its neighbors in the Far East and the nine percent tax rebate taken into account in Chinese boron added wire rod export offers are two advantages which China holds.
Meanwhile, Turkish interest in the US wire rod market is still evident. While trying to keep export price levels to this country at certain levels, Turkish wire rod producers are monitoring the price levels of Chinese export offers to the US with great attention. Additionally, Turkish producers' interest in Greece has again been seen this week; however, so far no wire rod deal to this country has been heard.
Regarding the European wire rod markets, considering the price increases in Turkey during the holidays in Europe, European wire rod producers are trying to increase their prices in their domestic markets. It will be seen in the coming days whether these price increases will be met with acceptance.