Silence predominated in the Turkish domestic wire rod market in the lead-up to the New Year. Against the background of continuously shrinking demand for finished steel, even end-users whose stock levels are at quite low levels have not been inclined to raise their inventories. Rumors that export bookings will increase as European market players return to the iron and steel markets next week have led some end-users to expect a slight increase in prices. Meanwhile, some of the Turkish wire rod mills have this week started to raise their domestic sales prices in the context of increasing scrap costs. Although no export offer was announced on the producers' side this week, it is said that wire rod prices may show a gradual increase reflecting scrap costs and also in line with the return of the European market players to the markets next week. In addition, it is heard that inventory levels of traders have decreased to a certain extent; however, traders have not been considering purchases of large tonnages as they have been unable to foresee the future market. On the import side, ex-Ukraine offers to Turkey for 1008 grade wire rod have this week reached the level of $500/mt CFR Turkey for January shipment, showing a slight increase.
As we indicated in our last analysis, some Saudi Arabian end-users were making price inquiries for high carbon wire rod over the last week. It is heard that export offers given from Turkey to this country have been at high levels. However, this week a booking from India has been reported for the material in question; it is heard that a producer in India has concluded a deal for 1,000 mt of 5.5 mm high carbon wire rod at the level of $625/mt CIF Dammam for January shipment.
In the coming days, with Europe's return to the market we will be better able to see whether the demand levels will rise from the Turkish mills who intend to take advantage of the current €/$ exchange rate. On the other hand, the end-users in the Turkish domestic market have no desire to increase their stock levels, unless the shrinkage of demand for finished steel products is first alleviated.