Turkish wire rod export offers are observed to have decreased amid limited international demand and also due to the significant fall seen in import scrap quotations in Turkey after the deal concluded yesterday, February 21.
Turkish wire rod producers are still receiving demand from markets to which they usually conclude sales of small tonnages, such as Africa, Latin America and Israel. However, they are seen to be having difficulties in competing with Ukrainian suppliers in the African market, since the Ukrainians have a freight advantage, with their offers to this region $15/mt lower compared to Turkish offers.
Turkish wire rod mills are experiencing difficult times regarding their sales to their main export markets, the US and the European Union, due to the 50 percent import duty and import quotas, respectively. On the other hand, with the influence of lower import scrap quotations, Turkish wire rod producers have reduced their export offers to the markets to which they usually sell small cargoes by 10/mt week on week to $520-540/mt FOB.
As a result of the sharp decline seen in import scrap prices following the most recent deal, foreign buyers are expected to exert further pressure on Turkish wire rod offers and to put their demand on hold.