Northwest EU domestic rebar increase as mills aim higher levels

Northwest European domestic rebar prices jumped week on week Oct. 4 as mills aimed for higher levels.

Platts assessment of Northwest Europe Rebar was up Eur30/mt at Eur605/mt ex-works in the week to Oct. 4.

One distributor source in the Benelux region reported a deal for 250 mt of rebar at Eur625/mt delivered Benelux, however, adding that demand remained weak for long steel products in the domestic market due to slow construction activity.

One European mill source told that German mills were raising rebar offers in the domestic market. “Mills are trying to ask for more but are accepting less [in case of deals], but it is a clear indication that the market trend is changing. We are seeing demand in the market now,” he said.

Another European mill source reported that there was a positive change in the market as customers seemed willing to pay higher prices for long steel products. The sources noted that even though mills had not been successful in achieving transactions levels at announced elevated offers, still transactions were happening at higher levels than earlier. The source indicated a workable level for rebar in the domestic Northwest European market at Eur610-Eur620/mt delivered.

One European trader expected prices around Eur600-Eur610/mt delivered to be workable for rebar deals in the local Northwest European market.

Meanwhile, Platts assessment of European medium sections (category 1, S235 JR) was stable at Eur780/mt delivered on Oct. 4.

Market sources reported workable ranges for beams around Eur745-Eur820/mt delivered, based on location and demand. Some sources reported that customers were only buying as per needed basis and avoiding restocking activity.

Rabia Arif