Northwest European rebar prices inched higher in the week to 30 July. Trading activity remains thin amid the summer slowdown, but bullish signals from surrounding regional markets gave producers room to increase offer levels in anticipation of stronger post-holiday demand.
McCloskey’s sources reported prices for Northwest European rebar between EUR615-625/t delivered.
Market participants confirm the market as quiet for summer holidays, which will continue to weigh on trading activity for the coming weeks, and expect this week’s offer price increase to serve as a sign of higher prices to come once producers complete holiday-aligned maintenance.
“List prices are up slightly,” said a Benelux distributor. “Nobody wants to buy due to the holidays, so any effects won’t be seen for a couple of weeks, this is more of a signal for the market in case of demand recovery.”
That said, buying at prices close to EUR600/t was no longer considered negotiable with domestic producers, considered as having sufficient orderbooks to carry them through the quieter summer period. Higher prices in the Italian and Spanish domestic markets were cited as factors giving North European sellers room to increase offer levels.
Imported steel is also becoming less attractive as associated lead times increasingly fall liable to Carbon Border Adjustment Mechanism (CBAM) clearance duties.
While Turkish and North African material could still feasibly arrive in time before January, availability for said origins is tighter given competitive pricing and recent changes to rebar import restrictions under the European steel safeguard system – potentially compounded long-term if intensified replacement measures are introduced ahead of schedule as rumoured, from January.
Benjamin Steven Journalist, Steel
