Posted on 16 Dec 2019
Turkish wire rod producers have further increased their quotes as prices of scrap imported into the country continue to increase.
Turkish mills’ quotes for mesh quality wire rod, which stood at $460-470/tonne fob the previous week, rose last week mostly to $475-485/t fob Turkey. However, higher quotes of up to $500/t are also available from some mills, especially the ones that are fully booked for longer.
Although some mills express their satisfaction over both domestic and export demand, most mills are less than satisfied with the demand situation.
A Turkish wire rod producer tells Kallanish: “It is very hard to talk about the actual market situation. Our raw material costs are increasing very fast. You may end up regretting the sales you have concluded a day ago due to the sharp increases in our production costs.”
“In order to be satisfied with demand, you need to be able to sell at that day’s offer prices. But we still have to give big discounts in order to conclude sales,” he adds.
“Scrap prices have to settle first,” says another producer. “We are unable to reflect the rate of scrap price increase to our wire rod sales prices.”
While no new big-quantity wire rod sales were heard last week, small-quantity sales were concluded to customers in South America, Africa, and the Middle East at $460-470/t fob, depending on the quantity.
