The European non-integrated wire rod processors association EUNIRPA has expressed its concern about the continuous tightness on the wire rod market in the EU. According to EUNIRPA, although EU integrated producers are enjoying very healthy margins, the non-integrated wire rod processors remain under continued threat of margin squeezes and for the time being, this is mitigated, to a certain extent, by imports from third countries.
EUNIRPA stated it is concerned that, in spite of growing wire rod consumption in the EU, the non-integrated wire rod processors are not able to benefit from the positive market environment to the same extent as integrated EU wire rod producers. A significant number of non-integrated processors are suffering from the pressure of a continued margin squeeze exercised on downstream production. This has in recent months led to further closures of non-integrated processors.
Van Ginderdeuren, president of EUNIRPA, stated that the association considers that this challenge will be mitigated only if access of imports from third countries at commercially viable quantities and reasonable prices is maintained.
Meanwhile, the non-integrated wire rod processors association also stated that it is also actively monitoring with concern the explosive increase in prices of electrodes and other raw materials, which may severely impact on the input costs of its members.