London: In the Northern European market, the Steel Wire Rod prices are stagnant due to the lower domestic demands amidst higher energy costs. As per buyers, Summer holidays and traditional plant maintenance also persist, leading to softer demand from steel manufacturers. However, market participants anticipate Wire Rod prices going up in the next 2-3 months, but mills will probably reduce the capacities amid high production costs. According to the market players, domestic transaction prices for drawing-quality Steel Wire Rods are at USD 880/Tonne ex-works.

Furthermore, domestic distributors cite that they face no trouble in getting inventories. Additionally, sales are picking up a little, and stocks are falling to the point where they can consider replenishment, but not this year. According to our sources, the price direction of the wire rod is very uncertain, with low demand and rising production costs pushing the market on both sides. Some mills were offering with the condition that prices could include variable extras on energy costs at the time of delivery, but this was not agreed upon or widely accepted in the market on the day.

According to the buyers, the European market is tranquil at the moment. Everyone's waiting for price revision, be that a price rise or further decline. Additionally, manufacturers have attempted to increase base prices or include extras for energy or transport, but this was more to gauge buyer reaction than to lead the market upward. Despite market uncertainties and recent material depreciation, buyers demand firm offer prices in negotiations and are resistant to flexible surcharges to absorb mill costs downstream.

Suppliers also state that Wire Rod import offers from other countries continue to influence the domestic market, with such offers hovering around USD 800/Tonne CFR. Scrap prices are rising again and are unlikely to fall anytime soon, putting pressure on the market. River water shortages in Germany and other parts of Europe could disrupt raw material deliveries this month and into September. As a result, ChemAnalyst predicts that the Steel Wire Rod market will be stable in the coming weeks.