Looking at the European wire rod markets where buyers in general are still slow to conclude purchases, in this week's Bulgarian domestic market wire rod prices have improved slightly, as expected last week, to BGN 990-1,000/mt ($661-668/mt) CPT. Some revival in demand and increases seen in Turkish mills' wire rod export offers have contributed to this slight increase.
Since Italy and Spain had mostly been on holiday last week, southern European mills' wire rod export offers were expected gain clarity by this week. As anticipated, southern European wire rod mills have increased their export offers, in line with Turkish mills' export price increases. Accordingly, ex-Spain mesh quality wire rod offers this week have increased to €525-530/mt ($683-689/mt) FOB, for January shipments. However, in Turkey, one of the Spanish mills' export markets, buyers are not expected to show much interest in this offer price level, due to the longer lead times and additional freight costs involved for Spanish material.
Due to the weakening of the euro against the US dollar, European mills are thought to be in a more advantageous position now as regards wire rod exports to North African markets. It is also reported that wire rod demand in South Africa has lately gained some strength.