The European long steel market has shown differing trends over the past week. Producers continue to defend their price requests amid high energy and logistics costs, but downstream demand remains insufficient to support the widespread consolidation of increases.
While the Italian longs market has remained largely lacking in momentum, Polish mills have raised their rebar quotations to €630-640/mt CPT from €620-635/mt CPT in the previous week, with increases of €10/mt and €5/mt at the respective ends of the range. According to sources, distributors have followed this movement, offering material at €640-650/mt CPT. However, the increase has taken place in a context of cautious purchasing, with no indications of a sharp acceleration in consumption.
In Spain, market participants have reported a recovery to €735-740/mt, following previous levels of around €720/mt, all ex-works, with peaks of up to €750/mt ex-works. However, Spanish distributors remain cautious regarding the possibility of sales returning to normal by the end of the year. In addition to the slowdown in the local market, they have also reported greater difficulties in shipping material to other European countries such as Bulgaria and Romania due to insurance restrictions and the reduced willingness of shipowners to operate on these routes.
In Germany, a general slowdown in production and a shortage of material have been reported, as the low water levels of the Rhine continue to prevent deliveries by river and to drive up freight rates.
Apart from Italian offers, exports are currently available mainly from Greece, standing at €630-640/mt FOB for rebar and €620-650/mt FOB for wire rod. Rebar in coils from the same origin is being offered at around €650/mt FOB. “We have also been forced to seek increases due to high energy costs,” a Greek source stated.
As for imports, Turkish offers have been reported at €585-595/mt CFR for rebar and €595-605/mt CFR for wire rod, both down by €5-10/mt week on week. Both ranges mainly refer to shipments in November. Some Indonesian wire rod offers have also been reported at €510/mt CFR for shipment in January. Finally, Egypt is offering rebar at €580-590/mt CFR and wire rod at €590-600/mt CFR, while Algeria continues to remain largely absent from negotiations, except for a few small sporadic deals.
Overall, sentiment in Europe remains cautious. Mills are trying to preserve their margins, while distributors and end-users are limiting purchases to their actual requirements. Opportunities in eastern Europe provide a partial outlet, but market feedback does not indicate enough demand to absorb producers’ price requests.
€1 = $1.12
Author: SteelOrbis Editorial Team
