Northwest European domestic rebar prices continued to strengthen on week to March 23, amid supply constraints and high costs.
S&P Global Commodity Insights assessed Platts TSI Northwest Europe Rebar at Eur1,230/mt ex-works March 23 up Eur55 week on week, surging to a record since the index began January 1998.
As the Russia-Ukraine crisis greatly disrupted the supply chain in the market, pushing prices up to record highs, mills were offering long steel products at elevated levels while customers resisted buying at the record-high prices.
“The reference [mill offers] in Germany today are around Eur1,285/mt delivered from local German suppliers and this is the highest level,” one Italian mill source told S&P Global. The source added that the mill was offering rebars to Germany at Eur1,200/mt delivered and was booking orders around that level.
“Almost all producers were out of the market when price levels reached Eur1,300/mt base price for rebars,” one seller source said. The source put current offers for rebars at Eur1,360-Eur1,435/mt delivered, adding that demand should become active soon at these levels.
One European trader put a workable level for rebars at Eur1,100/mt delivered in France and Belgium and indicated that prices higher than that might be workable for Germany, while one EU market source indicated a tradable value for domestic rebars in Northwest Europe at Eur1,220-Eur1,260/mt delivered.
Meanwhile, European domestic steel sections prices also continued to strengthen significantly during the week ending March 23, as mills held back offers amid high costs and supply constraints.
S&P Global’s assessed the Platts European medium sections price (category 1, S235 JR) at Eur1,425/mt delivered March 23, up Eur50 week on week, reaching a record since the index began January 1998.
One Benelux-based distributor source cited a tradable value for category-1 medium sections at Eur1,350-Eur1,450/mt delivered. The source noted that there is around Eur150-Eur300/mt difference in domestic and import prices for long steel products, depending on the product. “Buying activity has calmed down a bit, but demand is still good,” he said, adding that current weather conditions are also favorable for construction projects.
One European mill source put tradable value for medium sections category-1 at Eur1,425/mt delivered.
— Rabia Arif, Staff
