Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €560-580 ($591-612) per tonne on Wednesday, stable week on week.
Mills were reported to be targeting offers of €580-590 per tonne in the Italian rebar market, but workable prices were still reported to be in the region of €560-580 per tonne, Fastmarkets heard.
Demand was reported to have improved during the week to November 22, but has since weakened.
“Many mills have raised offer prices to €580-590 per tonne, but this week mills are delivering old orders at lower prices… Demand is weak these days as customers restocked last week at lower prices. But the producers’ intention is to reduce production during the holiday season and then raise prices,” a buyer source told Fastmarkets.
Lower scrap prices could create resistance to the market accepting price rises, sources said.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $336.95 per tonne on Wednesday, down from $343.01 per tonne one week prior and from $360.32 per tonne a month prior.
Scrap prices dropped this week because of Turkey booking only half the cargoes they would have normally, Fastmarkets heard.
Inventories have been building amid slow steel sales and the approach of the year-end means it is unlikely to change soon so production has reduced and they need less scrap, sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €580-600 per tonne on Wednesday, unchanged week on week.
Southern European wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €600-610 per tonne on Wednesday, unchanged week on week.
Mills attempted price rises in the Spanish wire rod market, but these have not yet been accepted, sources said.
“In Spain, mills are trying to increase prices by around €30 per tonne, but import offers have become very competitive so I am sure that somebody will import and local mills will have to drop offers,” a trader source said.
Import offers of wire rod were reported at $540 per tonne CFR from Indonesia, sources said. Bids were reported as low as $520 per tonne CFR.
IREPAS’ short-range November outlook
European steel association Eurofer highlighted the importance of the European steel industry committing to the green transition to save the industry from irreversible decline, according to a statement issued by the association on Wednesday November 27.
The statement indicated that unless urgent action was taken by the EU and its member states, the steel and manufacturing sectors would become obsolete.
Without definitive action, further production cuts, plant closures and a worsening downturn would be the inevitable consequence.
“How many more plant closures, job losses and stalled decarbonization projects will it take before the EU and member states wake up? Europe’s de-industrialization is accelerating, with steel, automotive, renewables and batteries all on the brink,” Axel Eggert, director general of Eurofer, said.
“We urge the new European Commission and EU governments to stop this bloodshed and adopt swift measures on trade, CBAM, energy and steel scrap, while working on a structural solution to preserve our industry’s competitiveness”, he added.
