Concerns over possible supply shortages in medium term in Italian wire rod market

Thursday, 15 January 2015 17:18:23 (GMT+3)   |   Brescia
       

SteelOrbis has learned from market sources that in the Italian market local prices of drawing quality wire rod, that had stopped decreasing in the latter part of 2014, are currently at €455-465/mt delivered, i.e., stable compared to the period before the Christmas holidays. 
 
Sources have reported that the suspension of production at Riva's mill in Verona in northern Italy, which began at the end of October, has had no immediate effect on the market, as the company continued delivering material during November and during part of December, allowing customers to replenish their supplies. Now that the postponement of the restart of production at Riva's mill - initially set for the beginning of February - seems more and more likely, customers are starting to worry about a possible lack of material in the market in the medium term. Therefore, some customers have begun ordering import material from countries such as Ukraine and Turkey. According to market sources, it is possible that domestic wire rod prices will increase in the next two months, especially if the arrival of some ships is delayed.
 
Meanwhile, in the export market, the most recent orders have been concluded by Italian wire rod producers in the price range of €420-430/mt FOB.

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