A large European rebar producer describes sentiment in the sector at the Tube and Wire trade show in Düsseldorf as positive, with all producers moving to increase prices across their long products ranges, Kallanish learns.
Some mills are using the event to communicate increases directly to clients, while others have already announced increases since the show opened. The source believes that the general mood is improving alongside recovering margins.
Italian rebar producers are pushing prices up again this week, with offers now at €440/tonne ($518.54/t) base ex-works, a €30/t increase on last week.
Last week mills suspended sales while initially considering increases of €20/tonne, driven by sharply rising costs linked to the US-Iran conflict.
In Italy, despite initial resistance by buyers to a chain of increases over the past month, contract prices have risen significantly since early March, before the conflict started. Transactions last week were being concluded at €400-420/t base ex-works. The €440/t level is described as an asking price currently.
Buyers at the event say that this is a bubble that will burst in time as the increases are driven solely by speculation while demand has remained the same.
“We are writing officially to all our clients” one buyer says, “many of whom buy monthly and are still being delivered at March prices. Some are saying they will pause their building sites. We have demand from infrastructure, but the private sector is consuming very little at the moment.”
While some distributors with high stocks have chosen not to buy in April and can afford to wait, others have already committed at €400-420/t base ex-works. Including size extras of €260-270/t, effective transaction prices for Italian rebar are currently assessed at €660-680/t ex-works.
A French buyer at the event tells Kallanish that all European producers are pushing prices up and in France the level of €700/t delivered will consolidate in the coming week. ArcelorMittal is increasing all its long products by €50/t and Italian and Spanish mills are proving the most aggressive and uncompromising with their increases.
Another trade show participant notes that the price increases are being driven not only by higher input costs but also by CBAM and the incoming safeguard regulations, which are discouraging imports of not only rebar but also cheaper billets from third countries.
Author: Natalia Capra
