Following the increases in import scrap prices, Turkish steel producers have revised their
wire rod export offers upwards this week. Thus, Turkish producers'
wire rod export offers have increased by $10-20/mt as compared to last week to the range of $465-495/mt FOB. Meanwhile, US-based traders' offers for Turkish
wire rod to the US market are unchanged week on week at $540-562/mt DDP loaded truck at US Gulf coast ports. Although demand for Turkish
wire rod is slack in the export markets, some buyers in the US and Italy have continued to make inquiries for Turkish
wire rod, albeit rarely. However, most Turkish producers are not interested in the
wire rod demand coming from these countries, as they prefer to direct their products to their domestic market in order to make more profitable sales.
Turkish steel producers state that the new price levels for Turkish
wire rod have not gained acceptance in the export markets yet and thus they prefer to direct their sales to their domestic market, where
wire rod demand is at decent levels. The significant increase in domestic
wire rod demand has come as a surprise to market players. It has been caused by local buyers accelerating their stock purchases before some
wire rod producers in Iskenderun and Marmara region enter their overhaul periods in the months of June and July. Also, Turkish buyers are seeking to complete their
wire rod purchases early and to avoid risks of fluctuations in the Turkish lira-US dollar exchange rate after the general election to be held in June.