The Turkish wire rod market has remained quiet in the last week of 2010. Since most final product (steel mesh, nail, wire) manufacturers are busy with end-of-year stocktaking this week, they have tended to postpone their new wire rod purchases.
With most steel market players in Europe and the US on holiday, alternative markets, such as the Middle East and Africa, have come to the forefront. Having already increased their wire rod inventory levels before the holiday season, European buyers may be unwilling to conclude new bookings after the holiday.
In the Middle Eastern market, the Saudi Arabian government has announced that 2011 budget spending will reach $154.7 billion. This may result in improved demand in 2011, with a likely increase in construction and infrastructure projects.
This week, in the local Dubai steel market, low carbon wire rod prices stand at the level of $685-695/mt ex-works. SteelOrbis has heard that buyers in Dubai are reluctant to conclude new wire rod transactions ahead of the New Year.
In Ghana, in line with the exploration of petroleum in the country, construction and infrastructure investments are expected to speed up in 2011, increasing the anticipation for an improvement in demand in the New Year.
This week, the Iraqi government has announced that it will resume postponed infrastructure and construction projects. Following this announcement, finished product sales now seems to have strengthened. Meanwhile, this week, final product (steel mesh, nail, wire) inquiries from Iraq to Turkey have shown a significant increase.
Observers will watch with interest to see whether the positive expectations of international market players for 2011 will be realized.