The resistance seen in Bulgaria’s longs market earlier in August has finally started to break, with domestic quotations moving lower this week as the prolonged lack of demand leaves sellers with increasingly little room to defend previous levels. The seasonal slowdown, persistent liquidity constraints and sufficient inventories continue to restrict purchasing, while discounts that had previously been available mainly during negotiations are now being reflected more clearly in official quotations. With business still scarce, sellers have started to adjust prices in an effort to stimulate buying ahead of September.
Rebar quotations have accordingly declined to around €620-630/mt CPT, compared to €630-640/mt CPT last week. For serious buyers and larger-volume inquiries, however, levels close to €610/mt CPT are understood to be achievable. Wire rod has followed the same direction, with offers falling to approximately €660-670/mt CPT from €670-680/mt CPT previously, while around €650/mt CPT may be possible in negotiations.
Import demand remains very limited, as local consumption is weak, stocks are sufficient and many buyers are still in vacation mode. Nevertheless, following the recent increase in Turkish prices, some buying interest has been heard elsewhere in the Balkans, particularly in Romania, and similar activity may emerge in Bulgaria in the coming days. Turkish rebar offers have risen to around $575-590/mt FOB, compared to $570-580/mt FOB last week. With freight to Bulgaria estimated at around $25/mt, this corresponds to approximately €520-535/mt CFR Bulgaria, versus about €515-525/mt CFR previously. Egyptian rebar is meanwhile offered at around $580-590/mt FOB, resulting in an indicative level of approximately €530-540/mt CFR Bulgaria with freight of around $30/mt, compared to roughly €530-535/mt CFR last week. Egyptian wire rod offers have increased to $600-610/mt FOB from $590-600/mt FOB, bringing the corresponding delivered level to around €545-555/mt CFR Bulgaria, versus approximately €540-550/mt CFR previously. No notable European offers have been heard this week, as the regional holiday period continues, while fresh quotations are expected to return from the beginning of September.
