European Steel Wire Rod Prices Continue to Have Downbeat Sentiments
- 21-Nov-2022 2:51 PM
- Journalist: Patrick Knight
Germany: Steel Wire Rod prices in the Italian market fell more than 7.1% during the week ending November 18th, indicating a buyer-seller standoff. According to market participants, the downturn in the Italian Steel Wire Rod market continues, with prices falling by approximately USD 51/MT week on week. Some downstream customers, such as drawing mills, are implementing production curtailment and temporary layoffs. Market players point to a significant slowdown in demand outlook and lower consumer confidence. However, in 2022, all players across the product value chain reported record financial results bolstered by solid demand in the year's first half.
According to our sources, companies are well-stocked for the current low-demand dynamics. They will continue to purchase small capacities until the end of the fourth quarter of 2022, when more prolonged stoppages for the Christmas holiday are expected. Steel Wire Rod producers in Italy and other southern European countries have been idle since October 2022, and some in northern Europe have been mothballed for as long as three to four weeks. Italian contract prices for drawing-quality Steel Wire Rods are now hovering around USD 710-735/MT ex-works. Imported material from the Middle East and North Africa is currently available for USD 650-660/MT CFR Italy.
Meanwhile, northern European Steel Wire Rod prices continued to fall last week, with low sales and only small volumes being purchased. Most market players expect this trend to continue until the end of the year. Domestic transaction prices for drawing-quality Steel Wire Rods hover at USD 760/MT ex-works, and mesh-grade Steel Wire Rods settled at USD 760-7750/MT.
As per ChemAnalyst, the Steel Wire Rod prices are anticipated to plunge till mid-December as inventory levels at stockholders and steel service centers remain relatively high, allowing them to maintain a wait-and-see attitude. Meanwhile, manufacturers believe prices have already reached a nadir, with no room for further price reductions due to the high cost of production.