Turkish wire rod mills wait and see before determining their new export prices

Friday, 17 May 2019 16:28:15 (GMT+3)   |   Istanbul

As SteelOrbis reported earlier today, May 17, the US has halved the 50 percent duty on Turkish steel imports to 25 percent with immediate effect, and so most Turkish wire rod producers have decided to adopt a wait-and-see stance before determining their new export prices and have temporarily stopped giving offers. In August 2018, the US imposed an additional 25 percent duty only on Turkish steel imports, having already announced Section 232 steel tariffs of 25 percent in March of the same year.

Turkish producers’ export offers for mesh grade wire rod were in the range of $495-510/mt FOB last week. SteelOrbis has been informed that Turkish steelmakers, whose order books for May and June have already been filled, are planning to increase their wire rod export offers to higher levels of around $515/mt FOB.

Turkish producers have been trying to compensate for the loss of sales to the US with sales to South American countries, the Caribbean, Israel and Africa. With the reduction of the US duty on steel imports from Turkey to 25 percent, anticipated sales from Turkey to the US are expected to give some comfort to Turkish mills. It is believed that the reaction of international buyers to Turkey’s new wire rod export offers will play a significant role in shaping the trend of the market in the coming days.

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