According to market sources, domestic drawing quality wire rod (SAE1006) prices in Italy have trended sideways over the past two weeks at €530/mt ($636/mt) delivered to customer. Meanwhile, domestic mesh quality wire rod prices in Italy are at about €510-515/mt delivered.
Currently, import offers are not competitive as they are at around the same price levels, but on CFR basis. However, transaction volumes in the local Italian wire rod market are very low as local buyers are still expecting price decreases due to a possible diversion of steel flows to the EU market caused by the US Section 232 tariffs.
On the other hand, Italian wire rod producers doubt that prices will decrease, as in two weeks their customers, who are currently destocking, will have to resume their purchases. In any case, the situation will gain clarity in the next few weeks.
€1 = $1.20