European long steel prices hold steady amid weak demand, seasonal slowdown

European long steel prices remained largely stable Jan. 29, as mills sought to push offers higher despite continued weak demand and seasonal market slowdowns.

Market participants reported subdued trading activity, particularly in the construction sector, which typically experiences a seasonal slowdown at this time of the year. Mills remained under pressure from high energy costs and were looking to increase prices, but sources indicated that such attempts were unlikely to succeed given the current market conditions.

A Benelux-based distributor noted that while mills were keen to push prices higher, demand remained insufficient to support significant increases.

“Prices are quite stable, although mills would like to increase them due to high energy costs. Demand is not fantastic, so I doubt prices could rise,” the distributor said.

Another source added that mills lacked the ability to implement substantial price hikes, with a potential increase of only Eur5-10/mt at best.

Platts assessed Northwest Europe rebar at Eur595/mt ex-works, unchanged on the week. Medium sections were assessed at Eur790/mt delivered Benelux, also stable on the week.

Imports continued to be a weak alternative for European buyers, with long delivery times and CBAM-related obligations adding further complexity. Offers for medium sections from Turkey were heard at Eur840-850/mt ex-Turkey in mid-January, but sources deemed these levels unworkable given current market conditions.

Interest in low-carbon steel remained subdued, despite some suppliers offering certifications. Sources indicated that while premiums of Eur30-40/mt were being quoted depending on the mill, there was no obligation for the construction sector to use green-certified material.

“For construction, it’s not the best time of the year, and demand for conventional steel is already struggling,” a distributor said.

Platts assessed both rebar and medium sections carbon-accounted premiums at Eur35/mt, stable on the week.

Devbrat Saha