Weak demand pushes down wire rod prices in Italy

In the Italian domestic wire rod market, prices have decreased by €5/mt ($7/mt) as compared to last week, with the local price for mesh quality wire rod declining to €515-525/mt ($680-693/mt) and the price of drawing quality wire rod dropping to $530-535/mt ($700-706/mt). Both prices are ex-works and on actual weight basis.
 
In the meantime, some Italian mills' mesh quality wire rod export offers are standing at €525-535/mt ($693-706/mt) FOB on actual weight basis, for late February shipments, though no transaction has been concluded at this price range so far.
 
On the other hand, SteelOrbis has learned that some Algerian traders have offered mesh quality wire rod to Italy at €515/mt ($680/mt) FOB. However, it is also reported that Italian buyers are not interested in these offers, considering them to be on the high side.
 
Meanwhile, although the strike by Italian truck drivers last week has ended, thereby easing transportation problems, wire rod demand has remained slack in Italy, due to cold weather and tight liquidity. Local buyers are restricting their purchases within the scope of their needs, buying smaller tonnages.
 
€1 = $1.32