Italian rebar prices were stable in the week to Wednesday November 11, as persistently weak demand limited trading despite rising production costs and mills pushing for further increases, while German rebar prices rose amid high energy costs and constrained production.
In Italy, market participants reported weak demand, while high energy and fuel costs continued to put pressure on long steel production.
“Very few deals are being concluded because demand is extremely low,” a producer source told Fastmarkets.
At the same time, sources said rising energy costs were making current production levels increasingly difficult to sustain.
“In Germany, prices have risen a lot,” a seller source told Fastmarkets.
Another seller source said high production costs were prompting mills to manage output carefully, with export orders helping to balance lower domestic demand.
“Our costs are very high, and all producers have their stocks under control, with a mix of export orders and lower production levels,” the source said. “We all try to stop production when energy costs are at their highest during the day.”
A buyer source similarly reported little sign of a recovery in demand and pointed to sharply rising costs, adding that some market participants were considering steel mill stoppages lasting one to two weeks.
In northern Italy, deals, offers and workable levels were reported at €760-780 ($851-874) per tonne ex-works, with mills pushing to raise the minimum workable level to €770 per tonne.
In southern Italy, deals, offers and workable levels were reported at €770-790 per tonne ex-works. Mills were also pushing for prices of up to €800 per tonne, although this level was not considered workable by market participants.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy was therefore unchanged at €760-790 per tonne on November 11.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Spain was unchanged at €750 per tonne.
In Northern Europe, offers and workable levels for rebar were heard at €740 per tonne delivered during the assessment period.
Production was also reported to be constrained in Germany, where mills faced higher energy costs, while low river levels were said to be affecting operations.
“In Germany, the cost of energy rose, and the mills are not running at full capacity because of the level of rivers,” another producer source told Fastmarkets.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe was therefore €740 per tonne on November 11, up from €660-700 per tonne the previous week.
European wire rod prices remained stable during the assessment period.
In Southern Europe, workable levels for wire rod were heard at €670-680 per tonne delivered.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was unchanged week on week at €670-680 per tonne.
In Northern Europe, workable levels for wire rod were heard at €705-715 per tonne delivered.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe was therefore stable week on week at €705-715 per tonne on November 11.
