According to market sources, Turkish producers' mesh quality wire rod offers to the export markets have decreased by $10/mt over the past week to the range of $485-495/mt FOB, depending on tonnages.
Following the strike which started yesterday on January 29, a Turkish wire rod plant pulled out of the market, while other producers' orders books are on the empty side. The latest scrap deals heard in the market indicate a sharp decline in import scrap prices, while import billet offers have continued their downward trend.
Buyers in Turkish wire rod producers' target markets such as the US, Europe, the Middle East and North Africa are unwilling to accept Turkish wire rod offers and prefer to wait for more attractive price levels to conclude new transactions, due to declining raw material and semi-finished product prices. Additionally, with the euro still weak against the US dollar, it has become harder to conclude wire rod sales to the European market. Accordingly, sentiment is pessimistic among Turkish wire rod exporters.
On the other hand, ex-Turkey wire rod offers to the US have remained stable in the range of $606-628/mt DDP loaded truck at US Gulf ports. Market sources state that US buyers believe Turkish wire rod offers will decline following new scrap deals which are expected to be concluded at lower prices, and so they prefer to wait before concluding transactions for wire rod.