European rebar market weakens further

The European domestic long steel market continued its downward trend on little buying activity and negative sentiment, sources told S&P Global Commodity Insights May 24.

“Mills are searching for tonnages,” said a Benelux stockholder. “It’s usually the busiest time of the year, and now we’re going into the summer holidays on bad terms.”

Sources reported workable levels in the range of Eur630-670/mt delivered across Europe for rebar with mills trying to hold prices while buyers try to look for concessions amid low demand.

The upcoming second round in the Turkish elections May 28 is expected to possibly bring more price direction to the European market as the Turkish scrap market is expected to show more activity post election. Turkish scrap prices have largely been flat over the week in anticipation of the presidential election at $375/mt CFR Turkey for heavy melting scrap 1/2 (80:20) May 24.

Market participants were also looking to the Chinese market for price trends, where weaker property construction demand turned sentiment sour.

A European mill source said they were well booked and off the market, adding that demand in general was weak but that they were expecting a buying uptick ahead of the summer break in June with a possible sideways pricing movement.

Platts weekly Northern European rebar assessment dropped to its lowest point of the year so far to Eur650/mt EXW Northwest Europe May 24, down Eur15/mt on-week and down Eur95/mt from the start of the year.

Sentiment in the medium-sections market was similar, with sources reporting wide ranges of workable levels at Eur870-930/mt delivered Europe.

Platts is part of S&P Global Commodity Insights.

Authors 

Laura Varriale and Rabia Arif