Turkish wire rod producers increased offers last week despite failing to see satisfactory demand in export markets.

As a result of almost all mills raising their offer levels by $5/tonne on-week, current Turkish wire rod quotes for mesh quality stand at $450-460/t fob. However, mills that are fully booked for longer are trying to stay at over $460/t fob, preferably closer to $470/t.

Some mills express that they have seen some improvement in local demand, while others seem to be still unhappy with the current demand levels both in local and export markets.

A Turkish rod producer tells Kallanish: “Of course there are sales to export markets. I cannot say no one is buying. But we have to look if those sales leave a margin for the producers or if they are concluded in order to keep business running, without worrying about the margins.” He adds: “We have seen the nine-month balance sheets of many companies. It is a pity to have to work with such a great loss.”

“I am offering mesh-quality wire rod at $450/t fob, but I cannot even receive a bid,” says another Turkish rod producer. “Deals are concluded mostly at $438-445/t fob depending on the quantity and the regularity of the customer. We are far away from seeing expected sales levels. I hope all these scrap deals concluded at $260/t cfr do not result in a big disappointment.”

As of the week starting 11 November, Turkish mills had filled almost 80% of their EU quota. A producer is heard to have sold mesh-quality wire rod to a European customer at $438/t fob.