Long steel import prices decrease in EU, bottom not in sight

Longs import prices are decreasing in the EU due to week market internationally. European buyers are largely not interested in purchasing because of the steady downtrend. Only Asian wire rod is in demand due to low prices.

Wire rod from Malaysia and Indonesia is available this week in Europe at EUR 550-560/t CFR; prices from Vietnam are slightly higher. Insiders report that a Spanish customer bought 20,000 t of wire rod from Malaysia close to the lower end of the range at the beginning of the week. Products will arrive in the EU ports in September. Sales of around 15,000 t of wire rod were reported last week at EUR 565/t CFR to Spain from Asia. Two weeks ago, wire rod from Indonesia was offered in Western Europe at $605/t FOB.

Wire rod prices from Malaysia dropped amid expectations of the safeguards re-vision. There are expectations that quotas could be applied to wire rod from Southeast Asia starting from July 1.
A drop in wire rod prices from Asia made MENA suppliers reduce prices as well. Particularly, Turkish mesh quality wire rod is available in the Balkans at $630-640/t FOB, which corresponds to $660-670 CFR Italy (EUR 600-609/t CFR, EUR 1 = $1.10), versus $670-680/t FOB two weeks ago. Meantime, a price from Italy is heard at EUR 590/t FOB. Wire rod (SAE 1006 5.5 mm) offers for May delivery from Ukraine declined to EUR 660/t DAP Polish border over two weeks.
Rebar import prices in Europe also decreased in the first half of May.

There is strong competition between import and local prices in Europe. An offer from Spain to Scandinavia is heard at EUR 670/t CFR, end-June shipment. Rebar from Poland is offered in Lithuania at EUR 705-710/t DAP, June shipment.

“Market is a mess. Customers are not interested in buying anything, they are just waiting for another price decrease and no-one knows when this will end,” an EU source told Metal Expert.