Rebar producers from Europe withdrew offers from the market due to the rise in energy costs, particularly gas, which has direct effect on electricity prices, Fastmarkets heard on Wednesday March 4.
According to market sources, gas prices in Europe surged by 30-50% week on week following the escalation of the conflict in the Middle East, which has had wide-ranging impact on the international market.
Amid fluctuating energy prices, long steel producers either completely withdrew offers — while trying to estimate new market conditions and evaluate new offers — or provided some with very short validity.
“Honestly, I’m a bit stunned. Since [Monday] everyone’s been crazy, everyone has suspended sales. They [mills] gave me prices [on Monday] morning and after five minutes they called me to tell me it was no longer valid. I have no idea what’s going on, they’re not giving us prices or availability,” an Italian rebar buyer told Fastmarkets on Tuesday.
“The atmosphere strongly resembles what we experienced in 2022, at the outbreak of the war in Ukraine, when prices escalated dramatically. At that time, mills were revising prices several times a day — one price at 8am, another at 10am, and yet another in the afternoon. The market was in total confusion and within two months prices doubled,” a second Italian buyer said.
As of Wednesday afternoon, several mills in Italy indicated offers at €620 ($720) per tonne ex-works with very limited validity. Few customers said they could potentially accept such prices.
Nevertheless, there was no information about fresh deals because market leader Pittini has not yet announced its offers.
“The problem is that currently no one [producers and retailers] wants to commit themselves because whoever makes the first move risks losing the month. On the other hand, no one bought in February, so within a couple of days we will have to make do with the price,” a third Italian buyer said.
Meanwhile, demand in Italy has been limited so far in 2026, with rains and snow hampering work of construction sites and delivery in winter months. Sources, however, hoped for improvement in the spring.
Before the escalation of the conflict in the Middle East, domestic rebar prices in Italy were falling, with a large number of participants reporting tradeable levels in the north of the country ranging €550-570 per tonne ex-works, and slightly higher levels of €570-600 ex-works heard in the South.
Considering such adverse conditions, Fastmarkets weekly price assessment for steel reinforcing bar (rebar) domestic, exw Italy widened to €550-620 per tonne ex-works on Wednesday, compared with €560-590 per tonne on February 25.
Mills in Spain and Northern Europe also largely withdrew offers from the market.
Several sources reported offers for small tonnages of rebar with short lead times emerging in the German market at €640-650 per tonne delivered, which is €10 per tonne higher week on week. It was not immediately clear whether customers were accepting the new, higher levels.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, delivered Northern Europe widened upward to €610-640 per tonne on Wednesday, from €610-630 per tonne on February 25.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, delivered Spain was stable on Wednesday at €665-680 per tonne.
