Wire rod transaction prices have climbed further in the Italian market in the past three weeks. Drawing quality wire rod (SAE1006) prices have reached €470-480/mt delivered to customer, up €22.5/mt on average compared to the end of August. Sources have reported that local producers, after increasing their offers by €25/mt between July (when they were at €440/mt) and September, have raised them by a further €25/mt for October.
Consequently, the sources believe that domestic wire rod prices may reach €500/mt by mid-October. However, "the current market phase does not appear good," one local source stated, adding, "domestic demand is low and end-users are not asking for larger volumes compared to one year ago". Several sources agreed that the current uptrend is mainly due to the low number of potential suppliers, and only partially to the increase of raw material prices (scrap).