Northern European wire rod prices are stable this week amid low demand, sources say. However, some participants continue to expect more activity in the market this month.
“There was not much activity this week,” one buyer from the Netherlands tells Kallanish.
Domestic transaction prices for drawing-quality wire rod are at €650/tonne ($698/t) ex-works and mesh-grade wire rod is at €630/t.
Producers are asking for €650/t ex-works, on average, for mesh-quality rod.
“Most customers are again in the wait-and-see attitude, but this has to change soon,” another participant in the market notes.
If scrap prices start to increase, that could lift rod prices and demand, he adds.
German old thick scrap sort 3 is at €345/t, while new scrap sort 2/8 is €340/t. E40 shredded scrap is at €350/t. In Austria, scrap prices for new scrap sort 2/8 are €335/t, with old thick scrap sort 3 at €350/t.
Import quotes from outside the EU are having little impact on the European wire rod market. Offers are being heard from outside the bloc at €610-615/t cfr Rotterdam, which is considered uncompetitive by European buyers.
Earlier, ArcelorMittal said it is communicating to European customers its intention to implement a premium for all new orders of high-grade wire rod that require the use of DRI in the production process. According to participants, this will work only if the customer is ready to pay more for a higher wire rod grade.
Italian wire rod prices may increase as producers are considering pushing up their values due to the high production costs and low imports (see Kallanish passim). Domestic values for drawing-quality material are now at €640/t ex-works on average. Domestic mills are considering pushing up their asking prices to €670/t ex-works, sources say.
Svetoslav Abrossimov Bulgaria
