Northern European rod market stable, registers downside risk

Northern European wire rod prices remain flat this week and the market is quiet again due to low demand, sources say. Participants do not expect this to change in the coming weeks.

“Activity continues to be very weak and the drawing mills are not restocking so far,” one buyer from the Netherlands tells Kallanish.

Domestic transaction prices for drawing-quality wire rod are at €650/tonne ($704/t) ex-works and mesh-grade wire rod is at €660/t.

Producers are asking for €680/t ex-works, on average, for mesh-quality rod.

“Rebar prices in Europe are weak, which is influencing the wire rod market,” another buy-side participant notes. “Scrap prices are also expected to fall in March amid low demand and exports.”

German old thick scrap sort 3 is at €355/t, while new scrap sort 2/8 was at €358/t. E40 shredded scrap was at €370/t. In Austria, scrap prices for new scrap, sort 2/8 is at €350/t, with old thick scrap sort 3 at €360/t.

“Imports from countries outside the EU, like Algeria and Egypt, continue not to influence the European wire rod market,” another participant in the market observes.

Offers are being heard from outside the EU at €620-630/t cfr Rotterdam, considered uncompetitive by European buyers.

Svetoslav Abrossimov Bulgaria