Domestic steel mesh-quality wire rod in Europe managed to achieve new price gains over the past week due to limited supply and increased scrap costs, sources told Fastmarkets on Wednesday September 23.
*** Northern Europe
Fastmarkets’ weekly price assessment for steel wire rod (mesh-quality), domestic, delivered Northern Europe was €۴۶۰-۴۸۰ ($۵۴۵-۵۶۸) per tonne on Wednesday, widening upward from €۴۶۰-۴۷۰ per tonne delivered last week.
Producers managed to achieve the price of €۴۸۰ per tonne delivered in deals this week, however, most transactions were still done in the range of €۴۶۰-۴۷۰ per tonne, sources said.
The new target level for mills is €۴۹۰ per tonne delivered for October, however, buyers were not ready to accept it yet, one source said.
The sentiment in the market remained upbeat on the increased scrap market, limited material availability and a lack of competitive import offers, even though buyers were reluctant to accept higher prices, Fastmarkets heard.
“The end-market is not supporting this [price increase] yet, our margins are squeezed,” one consumer in Benelux region said.
Further price gains, among other things, will depend on the international raw materials markets, sources said.
*** Southern Europe
Fastmarkets’ weekly price assessment for steel wire rod (mesh-quality), domestic, delivered Southern Europe was at €۴۵۵-۴۷۵ per tonne on September 23, up by €۵ per tonne from €۴۵۰-۴۷۰ per tonne last week.
In Italy, wire rod was trading at €۴۵۵-۴۶۰ per tonne delivered this week, narrowing upward by €۵ per tonne from the previous week.
Buying activity in the country continued to be good and Italian producers were positive about further hikes due to the increasing scrap price amid low availability and good demand, sources said.
“Nobody knows how long this will last but at the moment we all have to accept these prices and others increases. Somebody says that €۴۹۰ per tonne might be the next step for November,” one source said.
In Spain, meanwhile, steel mesh-quality wire rod with October delivery was trading at €۴۶۵-۴۷۵ per tonne delivered during the assessment week, up from €۴۶۰-۴۷۰ per tonne last week.
Gains were achieved mainly due to the limited supply of the wire rod in the market and a lack of competitive imports offers, sources said.
“We’re receiving [wire rod] offers from non-EU countries at around €۴۷۰ per tonne cfr, which is way above the level we’re willing to pay for imported material, given delivery terms,” one buyer said.
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