Posted on 07 Nov 2019
Italian wire rod producers are seeking a €10/tonne ($11/t) increase month-on-month as prices have ceased to fall. The move is in line with increasing domestic scrap prices, market participants tell Kallanish.
Competition from cheaper imported material remains strong and is continuing to affect domestic sales, activity in which remains “… extremely challenging” this month, one source suggests. As happened in October, buyers are making only low-tonnage purchases due to uncertainty and lower consumption by end-users.
Domestic wire rod transaction prices are stable compared to October at €390-410/t ex-works, sources say. While producers are now seeking €430/t ex-works, imported Turkish and Russian material is being offered at 380-390/t cif. Wire rod can also be sourced at lower prices from central European countries making the market particularly challenging.
Distributors who spoke to Kallanish doubt that any attempt at a price increase can actually be converted into transaction prices this month. They are seeing a real fall in consumption by end-users and are forecasting stability for the reminder of November.
