Turkish domestic wire rod prices move up at a slow pace

SteelOrbis has been informed by market sources that local producers’ price levels in the Turkish domestic market for 6-7 mm mesh quality wire rod are currently as follows: 

The above prices, which are on actual weight basis, exclude VAT and are on ex-works basis. The offers may differ depending on buyers and order sizes. 

Turkish wire rod producers have increased their domestic prices by $5/mt week on week to $510-525/mt ex-works. The potential to accelerate export sales after the US decision to cut duties on steel imports from Turkey from 50 percent to 25 percent and also due to the expectations of a further rise in scrap quotations is cited as the main factor which has contributed to the increase in prices in the local Turkish wire rod market.  Following the US announcement of the reduction in duties, Turkish steelmakers’ wire rod export offers have moved up by around $12.5/mt week on week to $510-520/mt FOB. Market players are waiting impatiently to see the reaction of international buyers to the new price range.

Additionally, buyers in the local Turkish wire rod market are avoiding restocking purchases as they want to see whether the upward movement of prices will continue in the coming days. Concerns regarding inventory costs as well as their wish to see if their new wire rod export offers will result in deals are playing a big role in Turkish buyers’ decision to not restock. As a result, the overall tendency in the local Turkish wire rod market is to conclude purchases in line with daily needs.