Demand for steel rebar in Poland remained very poor in the week to Friday February 17, but mills refuse to cut their prices further, citing high costs, Fastmarkets heard.
There was virtually no activity in the Polish rebar market during the past week, according to sources.
In fact, some cut-and-bend companies have reportedly closed their rebar shops due to low prices and high costs, several sources told Fastmarkets.
“Prices for cut-and-bend [rebar] are very low; cut-and-bend shops are all loss-making now,” a trader said.
“Nobody is buying more than [enough to fill] one truck,” a second trader said.
Offers from local mills of 12mm rebar were heard at 3,300-3,350 zloty ($739-750) per tonne CPT, which would be equivalent to 3,250-3,300 zloty per tonne EXW. This was down from 3,350-3,400 zloty per tonne CPT seven days ago.
Mills were reluctant to reduce their rebar prices further, claiming that current offers are already at the cost line for them.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland was 3,250-3,300 zloty per tonne on Friday, widening downward by 50 zloty per tonne from 3,300 zloty per tonne on February 10.
In the secondary market, rebar was offered and traded at prices around 3,400 zloty per tonne CPT, largely stable from the previous week.
Some sources said that several stalled construction projects were expected to restart before the end of the first quarter and that this would support rebar prices.
Additionally, sources expected a recovery in demand for scrap and rebar in Turkey to support the rebar market in Poland in the long run.
Italian producers were offering rebar for March delivery to Poland at €700 ($748) per tonne CPT, but only very limited volumes.
Published by: Julia Bolotova
