Day: 15 June 2023

A pessimistic outlook and minimal market activity resulted in few trades being reported in the Northern European rebar and wire rod markets in the week to Wednesday June 14.Rumors that mills will target higher prices for the materials in the coming weeks could prompt buyers to restock, Fastmarkets heard.

Mills have become resistant to dropping prices any further amid already unworkable tight margins, sources said.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, delivered Northern Europe was €620-640 ($669-691) per tonne on Wednesday, down by €10 per tonne from €630-650 per tonne last week.

Market fundamentals were largely unchanged in the rebar market. Ongoing economic uncertainty, high interest rates and high inflation have resulted in construction projects being stalled or cancelled, sources said.

Many end-user industries have opted to postpone construction projects until economic conditions improve, Fastmarkets heard.

While some sources believe the price floor has been reached, other sources do not rule out rebar prices dropping further.

As a result, consumption has remained weak and market confidence depressed.

“Everybody is looking for when the price floor will be hit. There have been minimal bookings and very few inquiries. It is hard to work out where the price level is for domestic rebar because of so little volume being traded,” a buyer told Fastmarkets.

Other sources, however, were more optimistic.

“The situation is unchanged. Mills are projecting that prices will increase very soon. This has prompted buyers to book small amounts. It remains to be seen whether prices will rise or be accepted by the market,” a trader in the region said.

Wire rod prices were stable in the week to June 14 due to unchanged market fundamentals.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe was flat at €610-630 per tonne on Wednesday.

“Demand is stable and prices are unchanged at the moment,” a wire rod producer in the region said.

“The market is very quiet and I don’t see much movement at the moment,” a trader told Fastmarkets.

A major wire rod producer in Portugal announced production cuts for the entire month of July. Output cuts could pressure demand and prices upward throughout Europe because of the supply reduction, sources said.

Uncertainty around quotas for imports from countries outside the UE combined with long lead times for imports resulted in minimal appetite for imported wire rod.

Reduced supply of domestic products in Europe and low appetite for imports could result in demand rebounding, sources said.

Published by: India-Inés Levy

Prices for steel heavy plate across Europe inched down in the week to Wednesday June 14, but mill sources said the bottom is close, with costs starting to bite.Quiet market conditions persisted in Italy during the week to Wednesday, but sources said stockholders have started to send inquiries and are assessing the situation.

The most aggressive bids for commodity-grade heavy plate from stockholders were coming in at €710-720 ($766-777) per tonne EXW, but producers have not accepted these levels so far.

Re-rollers maintained offers at around €780-810 per tonne EXW, while for bigger tonnages it was possible to get €750-760 per tonne EXW, sources said.

As a result, Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Southern Europe was €750-790 per tonne on Wednesday, down by €10 per tonne from €760-800 per tonne EXW on June 7.

Sources were not ruling out further downward corrections in June, but agreed the bottom was close, considering the approaching cost line for producers.

“The cost line [for plate] is now around €780-800 [per tonne EXW], given the price of slab purchased in previous rounds, with the new slab arriving, the cost line would move to around €750-760 [per tonne EXW],” a producer source said.

Import offers from Asia were reported at €700-730 per tonne CFR, but for October delivery.

Meanwhile, Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe was €870-900 per tonne on Wednesday, widening down by €20 per tonne from €890-900 per tonne on June 7.

Offers from one German integrated mill for commodity grade heavy plate with July delivery were heard at around €880-900 per tonne EXW.

A producer from Scandinavia was able to offer August-delivery plate at €900 per tonne EXW.

Buyers’ estimations of tradeable values varied at €850-870 per tonne EXW.

The trading activity in the region has remained subdued, with buyers having maintained a wait-and-see stance for several weeks now.

Limited tonnages of plate from Central Europe and Italy were offered to Germany at around €820-850 per tonne CPT, sources said.

Published by: Julia Bolotova