Northern European wire rod prices have increased this week after a sluggish market throughout summer, sources say. Most participants eventually expect new hikes amid a rebound in demand and restocking this month.
“Most customers did not purchase new volumes during the summer, because there was no activity in the market, but now there are some signs that the situation is changing,” one trader from the Netherlands tells Kallanish.
Prices have increased between €15-20/tonne ($16-21).
Domestic transaction prices for drawing-quality wire rod are at €600/t ($641/t) ex-works and mesh-grade wire rod is at €620/t, sources say.
Producers are asking for €620/t ex-works, on average, for mesh-quality rod.
“The mills in Europe are trying to ramp up wire rod prices and we will see if there will be some new demand from customers,” another participant in the market notes. “Maybe there will also be some movement due to the traditional autumn restocking in September, after the summer break.”
Offers are heard from outside the EU at €570-580/t cfr Rotterdam, with small tonnages booked, he adds.
At the same time, European scrap values continued to decrease in August amid low demand. This is influencing the wire rod market, another participant notes.
German scrap prices decreased last month amid low demand. Old thick scrap sort 3 was at €300/t, while new scrap sort 2/8 was at €305/t. E40 shredded scrap was at €310/t. In Austria, prices for old thick scrap sort 3 were down to €310/t and new scrap sort 2/8 was at €320/t.
Italian drawing-quality wire rod remained at €560-580/t delivered at the beginning of September.
Svetoslav Abrossimov Bulgaria