According to sources, in the Italian domestic wire rod market, prices for drawing quality low carbon wire rod have increased by €10/mt to €450/mt ($504/mt) delivered to customer, compared to two weeks ago. However, local producers have told their customers that prices could decrease by a further €10/mt in July, due to an expected decrease in domestic scrap prices. Meanwhile, demand has been sluggish because buyers have postponed their purchases as the difference between rebar and wire rod prices is too big.
On the export side, as in the case of rebar, wire rod exports to Algeria are still blocked. Accordingly, Italian producers have concluded some mesh quality wire rod sales to alternative markets at prices of €415-420/mt FOB ($465-470/mt). Meanwhile, import wire rod offers - i.e., offers coming from Turkey and Russia - are not competitive. According to one source, an ex-Russia offer for SAE 1006 low carbon wire rod has been given at €425/mt ($476/mt) CFR Italy, with July delivery. However, as domestic wire rod prices are expected to decrease further in Italy, buyers are reluctant to place orders for imports.
€1 = $1.12