European wire rod demand remains slack

Looking at European wire rod markets, in this week's Bulgarian domestic market wire rod prices have followed a sideways trend due to slack demand, remaining at BGN 985-990/mt ($680-683/mt) CPT. In the meantime, ex-CIS low carbon wire rod offers to Bulgaria are still standing at €475-480/mt ($641-648/mt) CIF on actual weight basis, for December deliveries.
 
Approaching the end of the year, fluctuations seen in the euro/dollar exchange rate are affecting wire rod buyers' purchase decisions in the international markets.
 
This week, ex-Spain mesh quality wire rod offers have been at €505-510/mt ($682-689/mt) FOB, for shipments in late December and January. However, in Turkey, one of Spanish mills' export markets, buyers are not showing much interest in this offer price level, due to the competitive price policies of Turkish domestic wire rod mills and also the longer lead times and additional freight costs involved for Spanish material.
 
In November, African markets such as Ghana, Senegal and Kenya, and also Peru in Latin America, were among Turkey's major wire rod export markets. Thus, it may be said that Turkish mills have turned to African and Latin American markets, due to the slackness in the Middle East and also the sluggishness in Europe caused by the financial instability in this latter region.