Activity in the Turkish wire rod market has been gaining some further speed in the post-holiday period. While some Turkish producers have already been revising their price lists in the post-holiday period, it is mentioned that some others may update theirs in the upcoming days. In general, the wire rod price in this market is still characterized by a slight slackness of performance, against the background of a number of difficulties facing the market.
The main problems in the local Turkish market for end-users seem to be as follows: rapid changes in the US$/TRY exchange rate, the deliveries of the remaining quantities of material bought when prices were at high levels, and, lastly, the high stock levels. It is heard that demand levels in the local market are low and that end-users have just been purchasing the minimum amounts required to enable them to deliver their orders.
Meanwhile, the current global crisis and the continuous fluctuation in the €/US$ exchange rate have been creating trouble for the Turkish wire rod producers and traders in the export market. It is heard that some Turkish producers have been trying to maintain their current production capacities, while some others have been reducing theirs.
The general expectation in the local Turkish market is as follows: in the long term, as a result of the possible price stabilization in the near future, trading activity may improve as cost calculations may get easier for both buyers and sellers.
SG2 grade wire rod prices have this week not been revised in the Turkish domestic market. It is heard that the Turkish producers are not willing to revise their SG2 grade price levels, while low carbon material prices have been updated. Although the Turkish import offers are still standing at €850/mt ($1,150/mt) CFR Turkish southern ports for the SG2 grade material, it is thought that the offers may be adjusted due to the current overall market conditions.
In the Bulgarian market, the wire rod prices have been hovering at BGN 930/mt ($644/mt) excluding VAT.
Looking at the southern European markets, it is observed that the iron and steel markets have been considerably slow, also given the background of the financial crisis in the USA. The mesh quality wire rod prices are currently at the price level of €470/mt ($636/mt) delivered to customer. On the demand side in this market, even if the import price levels seem reasonable, it is thought that purchases will be delayed for some time due to the high stock levels. SteelOrbis has heard that some producers in Italy have been trying to maintain production at normal levels, while some others have been reducing their output.
In Spain, in line with the situation in Italy, the mesh quality wire rod prices are currently at €470/mt ($636/mt) delivered to customer. Demand is also at low levels in the Spanish market.