Wire rod demand remains quiet in international markets

Last week, Bulgarian wire rod producers' domestic mesh quality wire rod prices were standing at BGN 1,040-1,050/mt ($672-679/mt) delivered on actual weight basis, exclusive of 20 percent VAT. Despite slack wire rod demand in Bulgaria, local producers are seeking to increase their prices due to the strengthening of the US dollar against the Bulgarian lev and also amid higher scrap prices.
 
In the meantime, CIS producers are offering low carbon wire rod to export markets at $670-675/mt FOB on actual weight basis, for shipments in February. In addition, Ukrainian producers' low carbon wire rod offers to the Bulgarian market are at €525-530/mt ($667-673/mt) CIF on actual weight basis, for February shipments.
 
On the other hand, Italian wire rod mills' mesh quality wire rod export offers were at €525-535/mt ($667-680/mt) FOB last week, on actual weight basis and for shipments in late January and early February. Besides, mesh quality wire rod prices in the Italian domestic market were at €520-530/mt ($660-672/mt), while drawing quality wire rod prices were at €530-540/mt ($673-686/mt), both ex-works and on actual weight basis.
 
Contrary to previous expectations, most buyers in the international wire rod market have remained reluctant to conclude new bookings after the New Year holiday.