This week Ukraine is reported to be back in the Dubai market with export offers. After Turkish wire rod producers started to test the waters in the export markets for price increases, offers coming in from Ukraine started to look more attractive to buyers in the Middle East. Trading companies and wire rod buyers are obliged to be cautious about new purchases as most buyers in Dubai will be off for the religious holidays next week. Wire rod export offers from Dubai for Saudi Arabia continue to be heard quite frequently.
When we look at Europe, we see countries like Portugal and Ireland struggling with problems in raising funds for their long-term bonds, and hence facing liquidity problems. This situation leads international fund holders to opt to invest their excess liquidity in developing countries. Turkey is currently enjoying the results of this situation, seeing some activitiy in the stock and bond markets. The appreciation of the Chinese currency against the US dollar and the Chinese government's intention to increase dollar reserves are also exerting an influence on the currency flow in the international markets.
Demand in Sri Lanka is reported not to have reached desired levels. Previously dominated by Indian producers, this market today is receiving export offers from Turkish producers as well as from European producers. Sri Lankan buyers recently appear to be showing greater interest in attractive ex-Europe offers.
Approaching mid-November, the main concern of wire rod buyers in the international markets is to gauge whether the increasing price trends will be maintained. Also, they are continuing to evaluate whether they will be able to balance increased purchases with finished product sales.