The upward movement in the overall wire rod markets is still continuing. Turkish producers concluded some sales last week to the market in southern Europe, a region which gained some momentum due to Spanish producers' offers at the price level of €550/mt ($808/mt), delivered to warehouse. Last week Turkish mills concluded some sales of mesh quality wire rod to southern Europe at $735-740/mt FOB, and also sales of drawing quality wire rod to Spain at $795-800/mt CFR. It seems likely that the CIS and Turkish producers will conclude new sales given the levels of activity seen in the European and the North American markets. The rapid increase in the local Spanish and Italian wire rod markets and the price rise in the local US wire rod market are strengthening the continuity of the price increase trend in the global wire rod market.
The slackness in freight rates is likely to continue to make producers happy. The softening in question has helped reactivate the transoceanic markets. It will not a big surprise if we see some sales to North America. It is reported that the prices are likely to rise in the global wire rod markets, which were left somewhat vacant following the departure of the Chinese producers.
In regard to the fact that wire rod demand is generally in parallel with construction demand, it may be said that the changes in freight rates and in general demand levels from construction and other sources will shape the wire rod price situation in the upcoming days.