Turkish wire rod market players show caution in purchases

A quiet mood has prevailed this week in the Turkish wire rod market. Having increased their prices in March, Turkish mills are having difficulties in their sales to exports markets as their offer levels are now higher than general offer levels in the local markets of other countries. 
 
In the local Turkish market, wire rod buyers are currently holding back from purchases as they hold certain volumes of inventory. The lack of clarity in Turkey's local and export high carbon wire rod offers has also deterred prospective buyers of this quality product. Some producers are heard to be focused on sales of low carbon wire rod rather than high carbon wire rod, and so they return late to price inquiries for the latter product. Since lead times for ex-European wire rod offers are mostly in May, buyers in Turkey are not showing interest in these offers.
 
On Turkey's wire rod export side, the efforts of Turkish mills to increase their offers in order to reflect strong scrap prices have been meeting with difficulties in the current period. This week, European market prices were still characterized by uncertainty due to the slowdown in trading activity caused by the Easter holidays and also as April prices have not yet been validated by the market. On the demand side in Europe, the mood has remained quiet because of the holidays.
 
The Middle East market continues to be a target market for Turkey. Strong momentum in demand in this region has been triggered by expectations of a price increase next week as Brent oil prices are standing at $85/bbl., by the restarting of construction projects in Saudi Arabia, and by expectations of price increases from local Saudi Arabian producer.
 
Meanwhile, ex-CIS and ex-China offers of low carbon wire rod for June shipment have caused international wire rod buyers who need to restock their inventories to seek for alternative supply sources. As a result, buyers who want earlier shipment dates have started to turn towards the Turkish mills for their price inquiries.
 
In the Far East, Vietnamese market demand is heard to have recovered a little further. In this market, where pressure is felt from ex-China offers, Turkish mills' offers are still on the high side, especially given freight charges, while their lead times are longer.