Wire rod prices have declined in the Italy over the past two weeks, with market players saying that quotations for this product have fallen by €20/mt compared to the levels in mid-June.
Currently, welded mesh quality wire rod is in a range of €800-810/mt ex-works while drawing quality wire rod has decreased to €830-840/mt ex-works.
The downturn is due to the strong slowdown in demand levels, to the drop in scrap prices and to the fall in demand for Italian wire rod in external markets. This situation has resulted in a greater availability of material in the domestic market and, consequently, in a drop in quotation levels. With regard to wire rod offers coming from overseas, price levels are not very competitive - for example in the case of material from Turkey at €860 CIF for mesh quality, or else deliveries are slow, e.g. arrivals from China expected in August at €720-740/mt CIF.
The near future remains uncertain. Market players says that scrap prices could constitute the decisive factor.