Turkish wire rod market sluggish ahead of New Year, while prices increase

In the Turkish domestic wire rod market this week, prices on Turkish lira basis have increased due to the continuous strengthening of the US dollar against the Turkish lira.
 
Last week, mesh quality wire rod prices in Turkey, excluding the regions of Iskenderun and Thrace, were standing at TRY 1,550-1,590/mt ($684-702/mt + VAT) ex-works, inclusive of VAT. This week prices have increased to TRY 1,550-1,600/mt ($684-706/mt + VAT) ex-works.
 
In the meantime, in the last days of 2011, no wire rod offers have been heard in the Izmir region, while no offers have been heard either from the region of Thrace to Istanbul. Wire rod demand in Turkey is currently quiet, due to the appreciation of the US dollar against the Turkish lira and also because final product (steel mesh, nail) sellers are conducting stocktaking. While some final product manufacturers have continued their wire rod purchases to supply their previously received orders, most final product manufacturers are seeking to end the year with minimum inventory levels.
 
On the other hand, Turkish mills' wire rod export offers this week are still standing at $695-705/mt FOB for late January shipments. Demand is also sluggish in the international wire rod markets due to the Christmas and New Year holidays, and buyers are expected to assess Turkish mills' offers after the New Year holiday.