Mills in Poland have been attempting to raise prices for long steel products since the beginning of December in an effort offset high production costs, especially high energy prices, but sluggish demand has hindered a more significant price rebound, Fastmarkets understands.
ArcelorMittal, which is among the key suppliers of long steel products in Poland, recently announced a €25 ($26) per tonne increase for all long-steel products across Europe.
Rebar
Polish mills were heard offering rebar at 2,600-2,650 zloty ($628-640) per tonne during the assessment week.
Considering ArcelorMittal’s latest price increase, offers for February production rebar were expected to increase by 100 zloty per tonne, sources said, but it remains to be seen if such levels would be sealed in deals.
Offers at 2,600-2,650 zloty per tonne CPT have been largely available in the Polish market since the beginning of December, with local mills trying to overcome the low levels from October and November deals.
Fastmarkets’ assessment for steel reinforcing bar (rebar), domestic, cpt Poland averaged 2,525 zloty per tonne in October and 2,516.25 zloty per tonne in November — 2024’s lowest levels.
The assessment stood at 2,600-2,650 zloty per tonne on Friday, widening upward by 40 zloty per tonne from 2,600-2,610 zloty per tonne a week earlier.
Although buyers were reluctant to accept the higher offers in December, producers appear to have been successful in pushing their targeted price level in January.
A producer source told Fastmarkets that they were completely booked for January, with tradeable levels reported at 2,600-2,650 zloty per tonne CPT.
Buyers’ estimations for the workable market level were slightly lower, at 2,600-2,610 zloty per tonne CPT.
But demand for rebar in Poland remained weak and no significant price rebound could be expected, sources said.
Rebar was heard traded at 2,650-2,700 zloty per tonne CPT in the secondary market.
Offers for Germany-origin rebar dame in at €620 per tonne delivered.
Ukraine was heard offering March-delivery material to Poland at €550-560 per tonne delivered in the border.
Wire rod
Polish mills have also been trying to increase offers for low-carbon drawing quality wire rod, Fastmarkets heard.
Local producers were offering the material at 2,700 zloty per tonne CPT. The offer prices were expected to reach 2,800 zloty per tonne CPT after the latest price increase, although it was still unclear if such a level would be accepted by customers.
Demand, however, remained low during the assessment week, with no signs of restocking.
Fastmarkets sources estimated the workable market level at 2,640-2,730 zloty per tonne CPT.
Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland was 2,640-2,700 zloty per tonne on Friday, narrowing upward by 40 zloty per tonne from 2,600-2,700 zloty per tonne a week earlier.
Italy was heard offering low-carbon drawing quality wire rod to Poland at €630-660 per tonne delivered, which is €10 per tonne higher compared to similar import offers from the beginning of December.