Wire rod prices in Northern Europe continued to move higher this week on the back of strong demand across Europe. However, the upcoming Christmas season and limited production from drawing mills due to high costs are expected to prevent prices from rising further before the end of the year. The projected increase is said to be around €10-20/ton ($11-22/t).
Domestic transaction prices for drawn quality wire rod averaged around €640/t ($689/t) ex-works, while those for wire rod in mesh grade averaged around €650/t. The average ex-works price for wire mesh is €660/t.
Offers from outside the EU were reportedly received at €580-590/t CFR Rotterdam and orders were generally in small tonnages.
It is also stated that European scrap values have also increased. In Germany, old class 3 thick scrap is at €320/t, while 2:8 scrap is trading between €325-330/t. E40 shredded scrap is observed at €330/t. In Austria, scrap prices were stable at €325/t for 2:8 and €320/t for Grade 3 old thick scrap.
Wire rod prices in Italy are also up by €30/t due to higher raw material costs and higher production costs. Drawn quality wire rod transactions were reported to have reached €650/t for products due for delivery this month.
Mills will also reportedly shut down for the Christmas holidays around December 20 and will be back in session after January 6.
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