This week, the principal mood in the Turkish wire rod market has been one of anxiety, due mainly to the strong competition between the wire rod offers of the Turkish mills and to the mills' efforts to sell wire rods to new markets. While some market players prefer a wait-and-see stance, others, believing that the opportunities for bargains have increased in the current situation, are continuing negotiations with producers. Although import wire rod offers, especially to the western region of Turkey, have increased, local buyers have recently been standing aloof from import wire rod offers.
On the export side in Turkey, the mood is quiet. The end of the Chinese New Year holiday on Monday is expected to have a swift impact on the global wire rod market. Last year March was considered to be the month when business activity would pick up; this year also, March looks to be a promising month, with the signals appearing positive. A more pessimistic view is that Chinese traders, who increased their inventories before the holiday, will bring their material to the market and head towards the export markets with very aggressive offers.
With China and other Far East markets on holiday this week and Brazil on a short-term holiday due to the carnival, negotiations from Turkey to the Far East and Latin America have slowed down. On the export side, ex-CIS wire rod offers are having an increased impact in the present period.
With negotiations continuing for low tonnages of wire rod from Turkey to the US market, the bad weather conditions in the US are causing the process to be longer than expected.
As regards sales to North Africa, the Turkish mills, which have to compete with southern European countries, are seen to be one step ahead as the €/$ exchange rate has this week been working in favor of Turkey, though weak demand in North Africa reduces this advantage. Besides, it is mentioned that southern European mills have this week started to revise their offer levels in order to conclude deals in the North African market.
Next week market players will watch with interest to see how the end of the holiday in China on Monday will affect the global wire rod market.