Wire rod prices keep decreasing in Turkish market

In this week's Turkish wire rod market prices have continued to decline, with price of mesh quality wire rod decreasing to TRY 1,161-1,229/mt ($639-677/mt) ex-works, exclusive of 18 percent VAT, down from last week's price level of TRY 1,203-1,295/mt ($662-713/mt) ex-works. However, it is known that producers may even offer lower prices for larger volume orders.
 
Long steel demand in the Turkish and foreign markets have remained weak, due to the ongoing decrease in scrap prices, as well as due to the depressed economic situation in euro zone and the approach of Ramadan. Although local and foreign buyers have continued to make their purchases in line with their needs, they are anxious to avoid the risks involved in purchases of larger volumes as they are expecting prices to soften further.
 
In the meantime, Turkish producers' wire rod export offers are also pointing downwards, with their export offers decreasing to $620/mt FOB for July shipments, compared to $630/mt FOB early this week. However, despite the price drop, these offers have failed to attract attention, as wire rod demand in foreign markets is also fairly weak and as it is believed that prices will continue to decline.
 
$1 = TRY 1.816