In the week to November 22, mills attempted price rises in the rebar market; but buyers have so far resisted and somre mills are likely to begin cutting production in a bid to rebalance supply-demand dynamics, sources told Fastmarkets.
But European steel association Eurofer issued a statement on Wednesday highlighting the importance of committing to the green transition to save the industry from irreversible decline and calling for urgent action to be taken the EU and its member states, to avoid the steel and manufacturing sectors becoming obsolete.
But Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was unchanged at €610-620 ($642-653) per tonne on Wednesday.
Rebar producers were targeting price rises of around €50 per tonne in the week to November 28, but there has been no interest, sources said.
“Offer prices have gone up considerably, with domestic mills asking for up to €50 per tonne or even more, but these prices have not yet been accepted by the market,” a trader source said.
“But there is a very good chance they will be [accepted] in January, when we are back [after the end-of-year] holidays. And some mills will initiate production stoppages for a longer than normal during the coming holidays to get demand in balance with production,” the source added.
And halting production could put upward pressure on prices, Fastmarkets understands.
International scrap prices have fallen as a result of slow steel sales, sources said, and 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 on November 20 and down from $360.32 per tonne month on month.
Turkey only booked half the cargoes it would normally, Fastmarkets understands, because slow steel sales mean inventories have been building up and with the end of year fast approaching that is unlikely to change, so production has reduced and less scrap is required.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was also unchanged at €600-610 per tonne.
Stark warning
In its statement on Wednesday, Eurofer said that 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 decarbonisation projects will it take before the EU and [its] member states wake up? Europe’s de-industrialisation is accelerating, with steel, automotive, renewables and batteries all on the brink,” Eurofer director general Axel Eggert said.
“We urge the new European Commission and EU governments to stop this bloodshed and adopt swift measures on trade, [the carbon border adjustment mechanism], energy and steel scrap, while working on a structural solution to preserve our industry’s competitiveness,” he added.
