Nowadays, the key question posed by international wire rod market players is "How long will the current price increases last?" Final product (steel mesh, wire, nail) producers, having difficulties in calculating their production costs, are finding it hard to determine appropriate price levels for incoming orders.
Dubai and Saudi Arabia continue to remain key export markets for Turkey. While the increase tendency of prices in Dubai is significant, buyers in Dubai are reluctant to strongly increase their inventory levels, having learned from the 2008 crisis. This supports the view that the volumes sent to Dubai are being distributed to neighboring countries. Meanwhile, in Saudi Arabia, strong demand is expected to continue for a while, thanks to long-standing construction projects.
On the other hand, in Libya, ongoing villa construction projects support the strength of steel exports and final product (steel mesh, nail) sales to this country. Recently-begun construction projects in the Turkic republics supports steel exports to this region.
In Europe, similar to the Turkish market, increased scrap prices have influenced the steel market. Approaching the Christmas/New Year holidays, while European buyers are seeking to lift up their inventory levels, producers are placing offers for December shipments in response to inquiries for January shipments, due to changing scrap costs. As the winter conditions become more difficult, European producers are faced with reduced scrap availability. The markets of the UK and Ireland, even if the economic crisis is still being felt in the latter country, are seen as active markets.
Some construction projects in Algeria have increased the number of inquiries from this country. However it is too early to confirm that there is strong demand.