Northern European wire rod prices remain flat

Northern European wire rod prices are stable again this week, with the market sluggish due to low demand, sources say. Participants do not expect the market to change this month.

“The trade in Europe is very weak. There are not much new deals,” one buyer from the Netherlands tells Kallanish.

Domestic transaction prices for drawing-quality wire rod are at €650/tonne ($702/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.

“The scrap market in Europe is also weak and prices will probably fall in March, and this is also influencing the wire rod market,” another buy-side participant notes.

German old thick scrap sort 3 is at €350/t, while new scrap sort 2/8 was at €350/t. E40 shredded scrap was at €365/t. In Austria, scrap prices are stable in February. For new scrap, sort 2/8 is at €350/t, with old thick scrap sort 3 at €360/t.

“Imports for 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, which is too expensive.”

Italian wire rod prices are relatively stable this month (see Kallanish passim). Drawing quality is between €680-680/t delivered. Domestic material is, however, being challenged by competitive import offers from Northern Africa and from Europe.

Svetoslav Abrossimov Bulgaria