The international wire rod markets have once again entered the holiday mood. It is expected that negotiations for sales from Turkey to the US and Europe will now continue in the New Year as the US is getting ready for its holidays and as many European countries have already started theirs.
Although the Turkish wire rod producers are trying to fill the gap left by the absence of the US and European markets by turning to markets in the Middle East, Africa and the Far East, buyers in the international wire rod markets at present in general prefer not to increase their stock levels since they cannot predict what the price levels will be in the New Year.
Meanwhile, the European wire rod suppliers are generally absent from the market at the moment. And, meanwhile, the Turkish mills' idea of melting their surplus production in their local market seems very difficult. Considering that the Turkish finished steel (wire/welded wire mesh) export volume is mostly to Europe, Turkish wire/welded wire mesh producers' purchase activity for new material, i.e., for wire rods, from the local market has slowed down significantly due to the holidays. However, these producers are continuing some purchases in order to deliver previously booked orders. On the other hand, it is heard that finished steel(offers for welded wire mesh) given from the southern regions of Turkey to central Turkey have this week been more competitive compared to the offers given from the Marmara region. Also, it is mentioned that finished product (wire/welded wire mesh) sales activity from Turkey's southern region to Iraq still exists even though at low tonnages. However, the fact still remains: most buyers are in general very cautious regarding finished product purchase activity during these current days.
Turkish wire rod producers have this week been continuing shipments of previously booked orders. On the other hand, it is expected that some producers will likely carry out maintenance works or reduce production over the holiday period. Meanwhile, it is predicted that the export negotiations from Turkey to the US will likely gain speed with the return from the holidays since there are still signs of a price increase in the US wire rod market and also since Chinese sales activity in the US is getting weaker. Trading activities in most of the Far East countries have slowed down due to the preparations for the New Year, but it is expected that demand will likely improve in this region after the holidays. On the Middle East side, some wire rod deals from Turkey to Egypt have been heard, along with rebar deals for small tonnages.
We will monitor how what course of action wire rod buyers, now mostly hesitant, will take after the holidays.