New purchases are increasing northern European rod prices

Northern European wire rod prices have started to increase this week due to new purchases and despite higher energy costs in Europe. Some sources say they expect more new orders from customers.

“The market is starting to revive after the past weeks of stagnation,” a buyer from the Netherlands tells Kallanish. “The prices for mesh have increased by €25/tonne ($24.97/t) and steel mills are starting to purchase new volumes.”

Domestic transaction prices for drawing-quality wire rod are at €880/t ($879/t) ex-works and mesh is at €875/t, sources say.

Producers are asking for €890/t ex-works, on average, for mesh-quality rod.

“The extremely low river water levels in Germany and other parts of Europe are impacting raw materials deliveries,” another merchant notes. “This is a disaster for the market and will probably continue next month, which will influence the prices. Imports from countries outside the EU so far have stopped to influence the market.”

However, scrap prices are also climbing again and not expected to drop soon and will also put pressure on the market, he adds.

Scrap values in Germany increased slightly so far in August. Old thick scrap sort 3 was at €350/t, while the price for new scrap sort 2/8 was at €360/t. In Austria, scrap prices are also up: old thick scrap sort 3 is at €350/t and new scrap sort 2/8 at €365/t (see Kallanish passim).

Most northern European wire rod market participants expect that prices will continue to increase in the next few weeks, because mills are starting to restock.

Svetoslav Abrossimov Bulgaria