In Turkish wire rod market buyers still hesitate as regards new purchases against continuing softening trend. Although buyers' inventories are known not be generally at higher levels, most buyers are following a wait-and-see policy due not to know where wire rod prices bottom point will be, while others which are obliged to hand over their previously taken orders continue to purchase only in order to meet essential needs. In this climate of uncertainty, mills which have difficulties in determining certain sales prices are adopting prices policies according to order details.
Market players in Turkey are focused on Central Bank of Turkey, monetary policy cabinet decision which will hold on today.
In the Bulgarian market, mills' wire rod prices soften in line with the Turkish market prices. Meanwhile, some buyers in the Egyptian market are cautious in their approach to wire rod offers given from Turkey.
Buyers in Middle and West African markets are also showing hesitations as regards import offers given to these regions. In particular as a reflection of softening tendency in prices, some trading firms in this market are cautious about increasing their inventory levels. It is also heard that some buyers in Nigeria, which is thought as a target market, have difficulties in credit lines.
Looking at the US market, as an alternative to Turkish import offers, Spain and Italy's import offers, that started to be heard, can be thought as they started to seek an opportunity in the US market after North African markets.
In Europe, Central Bank of the Europe continue to provide funds to the countries which have economical problems. After sale of loans in Spain, international market players' opinions about Spanish economy are expected to gain clarity.
In Far East markets, due to the limited number of new construction projects in Vietnam, traders in this country are show hesitation as regards wire rod purchases.
Generally speaking, while wire rod prices remain stagnant, we will be following if Turkish producers will find solutions that stop softening trend and in the case that solutions are found, how buyers in the international market will react to this solutions.