Posted on 04 Nov 2019
Turkish wire rod producers are yet to see a recovery in global wire rod demand, but they have nevertheless kept their prices stable on-week at $445-460/tonne fob for mesh quality. However, lower-priced offers were also available in the Turkish market last week.
Scrap quotes have increased to above $260/t cfr Turkey. In the two new scrap bookings, HMS I/II 80:20 seems to be standing at $254/t and $258/t cfr from the EU and USA respectively, although these bookings have not yet been confirmed.
A Turkish wire rod producer told Kallanish on Friday: “We have seen a little improvement in demand, especially today. Scrap prices are about to hit $260/t cfr. Most probably we will not be able to keep current price levels next week. Despite the increased quotes, we are still way behind the increases seen in scrap prices. We have ignored bids at lower than $440/t fob this week, but I know many producers who are willing to settle at these prices.”
Another Turkish rod producer observed: “Yemen is one of the most important markets for us, but we are facing slowed demand in that market. This is mostly due to the payment restrictions brought by their central bank.”
Israel and South America are observed to have bought rod from Turkey last week, although the tonnages were found by Turkish mills to be unsatisfactory.
