Northern European wire rod prices have decreased this week due to lower scrap prices and some cheaper import offers from countries outside the EU, most market participants say.

“The holiday season is over and there are new purchases, but at lower prices," a buyer in the Netherlands confirms to Kallanish. Most participants in the northern European market have started to buy more wire rod for their customers for October delivery, he adds.

Domestic transaction prices for drawing-quality wire rod are currently at €870-890/tonne ($1,027-1,051/t) ex-works and at €860-870/t ex-works for mesh quality, sources say.

Producers are asking for €890/t ex-works, on average, for drawing-quality rod.

“Corrections on the wire rod price came after scrap prices went down,” a German merchant comments. “The fall in wire rod quotes in Europe may continue due to the end of the traditionally strong summer construction season and full stocks.”

Wire rod quotes are affected by declining scrap prices in Germany and Austria, another market participant confirms.

Old thick scrap sort 3, for example, fell to €440/t in August negotiations. The price for new scrap sort 2/8 decreased to €450-460/t in Germany. In Austria, old thick scrap sort 3 decreased to €455/t, but new scrap sort 2/8 hit €510/t.

Northern European wire rod market participants are also observing the impact of cheaper import offers from countries like Bosnia, Albania and Russia, among others. These already impacted the wire rod market in Italy in July and August (see Kallanish passim). Sources continue to expect unstable prices in September.