Buyers step up wire rod inquiries to Turkey but remain cautious on new purchases

The quietness which has been evident in the Turkish wire rod market for a while now has prevailed again in the past week. The weak final product (steel mesh, wire, nail) demand in the Turkish market has led final product manufacturers to remain cautious about concluding new wire rod transactions. Due to local wire rod mills' ongoing maintenance works, as well as certain management problems, buyers in Turkey's Marmara region have directed their inquiries to other regions in Turkey. On the other hand, following the widening of the gap between wire rod prices in Turkey's Iskenderun region and those in other regions, some buyers from the Iskenderun region have preferred to conclude wire rod bookings from other regions of the country.
 
On Turkey's export side, this week there has been a significant increase in the number of wire rod inquiries to Turkish mills. However, concerns over a possible price softening means that buyers are not sure about whether they should move to convert these inquiries into actual transactions.
 
In the Balkans, due to the national holiday in Bulgaria that starts today, March 3, buyers in the country are expected to return to the market next week. In the Serbian market, the slowdown in construction projects due to cold winter conditions means that final product manufacturers (steel mesh, nail) are reluctant to conclude new purchases. In February, drawing quality wire rod prices in Serbia were standing at €550-560/mt ($744-758/mt - based on exchange rate in February) CPT due to tepid demand. In March, wire rod prices in the Serbian domestic market are foreseen to show a slight softening.
 
On the other hand, this week Spanish producers' mesh quality wire rod offers are currently standing at €515-520/mt ($712-719/mt) FOB on actual weight basis for late March and April shipments. Since Spanish steel producers have concluded some wire rod transactions to Algeria, as well as to the UK and Ireland, their export offers are now slightly above Turkish mills' export offers. In the UK, the wire rod market is following a flat but firm trend.
 
In Vietnam, the government's tight monetary policy has caused construction projects in the country to slow down. Domestic wire rod prices in Vietnam have softened by $10/mt during the past week.
 
Generally speaking, while Turkish mills are seeking to increase their export offer prices, buyers' hesitation in concluding new purchases appears to be a decisive factor in whether the mills achieve their aims.