Posted on 11 Nov 2019
Although demand for Turkish wire rod in export markets has declined this week, Turkish producers have kept their prices steady amid high scrap and billet prices. Global wire rod demand, even at lowered levels, is considered to be better compared to rebar.
Turkish mills’ quotes mostly stand at $445-455/tonne fob for mesh quality wire rod – unchanged on-week. However, some producers are seen to have offered at $460/t fob.
A Turkish wire rod producer tells Kallanish: “Demand slowed down as we entered November. It was stronger in the last days of October but now our customers seem to have backed off again, initially wanting to gain some more certainty about the market.”
While there is demand in North African countries, Turkish rod producers have to compete with southern European suppliers who have advantageous freight costs there. Relying on this competition, buyers in these countries are bidding at $430-435/t fob and even lower.
Turkish mills’ South American and African customers have concluded deals at $440-445/t fob levels in containers this week where quantities are at and below 1,000t.
While demand in the Israeli market continues, most Turkish producers are seen to have been unable to meet this demand due to Israeli customers’ preference for debar in coil and low-price expectations.
Demand in the EU remains at low levels amid European buyers' reluctance to commit to deals despite the availability of quotas.
Kallanish kept its weekly price assessment for Turkish wire rod exports unchanged last week at $450/t fob Turkey.
