According to information collected by SteelOrbis, upward pressure has persisted in the European long steel market this week. In line with the situation in Italy, other European producers are also attempting to raise prices, though without gaining full acceptance from end-users.
While the Italian market is struggling to reach €490/mt ex-works base (€750/mt ex-works including regular extras) for rebar, market participants report that German end-users are gradually accepting increases of around €10/mt in the rebar segment. However, the country is still experiencing a critical situation due to logistics difficulties and low river water levels, as previously mentioned by SteelOrbis. As for wire rod, initial November price indications may stand at around €690-705/mt delivered for drawing quality and €670-685/mt delivered for mesh quality, compared to the previous respective levels of €675-690/mt delivered and €645-660/mt delivered.
In Poland, the latest confirmed rebar price indications stand at around €670/mt CPT, though some sources report that mills intend to raise their prices by approximately €30-35/mt to offset higher energy costs. In the wire rod segment, increases of around €10/mt for drawing quality and €30-40/mt for mesh quality are also being considered. If successful, this would be the first substantial price increase since September. Accordingly, the new levels would rise to €690-700/mt delivered and €680-700/mt delivered, respectively, compared to the previous levels of €680-690/mt delivered and €650-660/mt delivered.
Energy costs are also a critical factor in Spain, although no new price levels have been reported in either the domestic or export markets for the time being. According to initial indications, November wire rod prices are expected to stand at €690-705/mt delivered for drawing quality and €670-685/mt delivered for mesh quality, up by around €10/mt compared to the previous month.
Ex-Greece export prices stand at €640-650/mt FOB for rebar, €655-660/mt FOB for rebar in coils and around €660/mt FOB for mesh-quality wire rod. These levels represent increases of approximately €10/mt for rebar and rebar in coils compared to prices in mid-October, while mesh-quality wire rod prices have risen by around €10-20/mt over the same period.
In the import segment, Turkish prices have reversed their trend compared to last week, following the strengthening of international benchmark scrap prices. Accordingly, Turkish rebar offers stand at €585-595/mt CFR, while Turkish wire rod offers are at €595-600/mt CFR, both up by €5-10/mt week on week amid a largely stable euro-dollar exchange rate. Egyptian offers have been reported this week at €585-590/mt CFR for rebar and €595-605/mt CFR for wire rod, respectively stable and up by €5/mt week on week. No offers from Algeria have been reported.
“Quotas are a major problem for importers, particularly in the wire rod segment,” an Italian market participant commented, adding, “They have been exhausted, and this could prompt local mills to raise their prices.” According to initial estimates, November wire rod prices in Italy could stand at €700-715/mt delivered for drawing quality and €675-690/mt delivered for mesh quality.
€1 = $1.12
