The European longs market has remained broadly stable this week, in the absence of clear price-driving factors.
In general, rebar supply continues to exceed wire rod supply, though demand for both products remains weak due to the slowdown in downstream markets ahead of the summer season, as well as ongoing geopolitical and regulatory uncertainty.
Official product-specific quotas under the new EU safeguard measures, which will come into force on July 1, were published at the beginning of this week, although country-specific quotas have not yet been disclosed. This development has generated dissatisfaction among market participants, who were expecting greater clarity with less than two weeks remaining before implementation.
As a result, European longs markets are experiencing what one market source described as a “general and cross-segment price roll-over”.
In the Italian domestic market, rebar prices have continued to stand at €440-450/mt ex-works base (€700-710/mt ex-works including regular extras), in the face of very weak demand, while drawing quality wire rod prices have remained stable at the same levels reported last week of €695-710/mt delivered.
“Mills will fight hard to avoid lower prices, as they would rather ship material outside Europe where possible than reduce their [price] levels,” a source commented. Accordingly, export prices for both rebar and wire rod from Italy have also remained stable in the latest offers.
On the demand side, buyers continue to act cautiously, limiting purchases to immediate needs and avoiding stockpiling.
In Germany, prices for long products have also remained stable, supported by largely unchanged scrap costs and expectations of an improvement in electricity cost incidence following the introduction of new support schemes.
In the Polish domestic market, however, downward pressure has emerged, as delays in the implementation of ongoing government infrastructure projects are reducing demand. “We hope the situation will recover after the summer, also thanks to the new safeguard measures,” two different market sources stated.
According to available data, mills’ rebar offers have been heard at around €680/mt CPT, while actual deals have been concluded at approximately €670-675/mt CPT. Traders’ offers have also been reported as low as €650-660/mt CPT. As for wire rod, offers have been reported at around €690-710/mt CPT, with one source indicating a higher level of €725/mt CPT, although this has not been confirmed at the time of publication.
In the import segment, offer levels have remained stable or are slightly lower compared to the previous week, as the lack of clarity regarding import quotas has led to reduced interest in incoming material from non-EU countries.
Offers from Turkey have been reported at €550-560/mt CFR for rebar (down by €5/mt on the lower end week on week) and at €560-570/mt CFR for wire rod, stable week on week.
Offers from Egypt have been heard at €545-550/mt CFR for rebar, down by €5-15/mt week on week, while wire rod offers have been reported at €555-560/mt CFR, indicating the same decrease over the same period.
Lastly, offers from Algeria have been reported at around €550/mt CFR for rebar and €560/mt CFR for wire rod.
All import offers mentioned refer to July shipments and are mainly directed to European countries outside the EU.
€1 = PLN 4.25
€1 = $1.16
