After a few weeks of stability, wire rod prices have increased in the Italian market in the past week, on the back of reduced supply, low stocks among end-users, recently-increased scrap prices, and a lack of imports. According to sources, local producers are offering drawing quality wire rod (SAE1006) at €490-500/mt delivered, against the €480-490/mt level reported in late October.
Recently, a producer in northern Italy has temporarily stopped its wire rod plant for maintenance, which, according to one source, "made buyers panic, as they possessed low stocks." In the meantime, another steelmaker declared that it has returned to the low carbon wire rod market recently, but, according to another competitor, such a return "will be short-lived because, when local prices will decrease, the production of such material will not be sustainable for the plant."
As for the export market, rumors have circulated in recent days about the closure of a sale of wire rod from Italy to Turkey. However, the transaction, which would be the first of its kind in over fifteen years, has not been confirmed either by the seller or the buyer. Nonetheless, the manager of an Italian wire rod producer claimed that sales to Mexico and Canada have been made recently from Italy at a price of around €440-450/mt FOB.