The European long steel market has continued to show differing trends this week. Higher energy and logistics costs are prompting some producers to take a firmer stance, while distributors and end-users continue to limit purchases to immediate requirements.
In the Italian rebar market, producers’ price requests have remained unchanged compared to the previous week, €720/mt including regular extras.
In Poland, market feedback indicates new offers at around €660/mt (PLN 2,900/mt) delivered, compared to the latest sales reported at €640-645/mt (PLN 2,800-2,830/mt) delivered, up by €5/mt compared to last week’s level. Stronger demand from Ukraine for Polish material is fueling expectations of further increases, although it is still too early to identify a uniform change across the market. Meanwhile, the leading European steel producer has stated that it will seek increases of €30/mt for November sales.
In central Europe, particularly Germany, rebar prices have also been reported at €650/mt delivered, up by €10/mt compared to SteelOrbis’ latest indications. Logistics are having the greatest impact in this market, as water levels on the Rhine remain significantly below reference levels.
In the export segment, in addition to Italian offers, Spanish rebar offers have been reported at €645-650/mt FOB, stable overall compared to the previous levels. Moreover, sources have reported that the shipping situation in the Black Sea is becoming more complex because of the higher insurance and freight costs linked to the ongoing conflict.
In the import segment, Turkey continues to show signs of softening. Official Turkish rebar offers for shipment in November stand at €585-595/mt CFR, down on US dollar basis but stable in euro terms compared to last week. Some Turkish mills are reportedly willing to consider €575-580/mt CFR for large tonnages, although no deals have been confirmed at these levels. Turkish wire rod offers have meanwhile declined by $5/mt week on week, with the upper end of the range also falling by €5/mt compared to the previous levels, to €595-600/mt CFR for the same shipment period. Offers from Egypt, instead, have been reported at €580-585/mt CFR for rebar and €595-600/mt CFR for wire rod, respectively lower by €5/mt on the higher end of the range and higher on the lower end of the range by the same amount. Both variations are on weekly basis.
Overall, European producers are seeking to pass on at least part of the higher energy costs to finished steel prices, while stable scrap prices provide only limited support for their price requests. Sentiment therefore remains cautious: while high energy and transportation costs may strengthen suppliers’ price requests, weak end-user demand continues to limit increases in long steel prices.
€1 = $1.12
