Italian wire rod producers’ asking prices increased month-on-month by €20/tonne ($23.8/t) before the market went on holiday two weeks ago. This was in line with increasing prices for all steel products in the country and as a consequence of the EU announcement of safeguard duties. Wire rod transaction prices, however, have remained stable so far or only upticked by €10/t.

Asking prices are now at €550/t ex-works on average while transaction prices remain in the range of €520-540/t ex-works. Sales contacts who spoke to Kallanish said that the period of calm began well before the holiday period and July was an extremely slow month due to both national and international price uncertainties.

In September when the market resumes activity, there may be another price boost from producers, Kallanish hears. Some sources however, believe that the principal Italian wire rod maker will consolidate the July increases and maintain stability. Meanwhile export sales have been stronger than domestic sale before the August break, sources suggest.