In the Turkish domestic market, the softening of the US dollar against the Turkish lira was effective in determining local wire rod sales prices. The majority of wire rod buyers in the local Turkish market have continued to abstain from new purchases. Considering that prices may decline further in the coming days, companies which need to purchase wire rod in order to keep final product (steel mesh, nail) production going continue to purchase only in order to meet essential needs. With the $/TRY exchange rate at the level of 1.39, the price gap between the Iskenderun region of Turkey and the country's other regions appears to have narrowed, relatively speaking.
Due to the ongoing bad weather conditions, construction projects have slowed down. With the rainy weather and also the concern that prices may soften further, purchases of larger tonnages became less frequent in the Turkish domestic market. Thus, demand for final products (steel mesh, nail) has this week been sluggish. Given the ex-Europe mesh quality wire rod export offers and the lead times involved, Turkish buyers hold a positive view of local market prices.
Looking at the Italian market, the softening in scrap prices has started to be felt on the long product side. Italian buyers are following different strategies given the weekly changes in wire rod sales prices. While some Italian buyers are abstaining from purchases and continue to wait, others are trying to minimize possible losses they could incur due to the changing wire rod sales prices by concluding their purchases on a weekly basis. Producers in Italy are heard to be carefully evaluating possible wire rod sales to Greece.
In addition, Iran is one of the countries that is worthy of note in terms of wire rod export markets. Iranian buyers, who have difficulties in procuring wire rod due to the current embargos, are seeking alternative supply channels as Malaysia and Taiwan have suspended their wire rod export offers to Iran. It is worth remarking that there has been an increase in price inquiries from Iran to Turkey.
In the local Pakistani market, wire rod prices are trending upward. As local market prices have not shown any significant changes in Vietnam, buyers are waiting for ex-China wire rod offers.
Generally, the Latin American market remains a major destination for long steel product exports.
Market observers are currently watching to see when buyers in the international wire rod market will stop hesitating as regards new purchases.