Some producers had tried to increase prices but were unsuccessful because buyers refused to accept the higher prices – ArcelorMittal, for instance, pushed up its offer price for long steel products across Europe by €20 ($21.33) per tonne, sources told Fastmarkets on the sidelines of Wire & Tube fair in Dusseldorf, Germany, on Tuesday.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland was 2,600-2,630 zloty ($640-647) per tonne on Friday, down by 40-50 zloty per tonne from 2,650-2,670 zloty per tonne on April 5.
A distributor source based in Poland said it had not heard about any ArcelorMittal price increases, adding that some offers from the local mills had come in at 2,620 zloty per tonne CPT, which nets back to 2,600 zloty per tonne ex-works, and that some deals had been signed at that price.
A second distributor source reported slightly higher offers at around 2,650 zloty per tonne CPT, which nets back to about 2,630 zloty per tonne ex-works.
The first distributor source said the downtrend would continue in the coming weeks and prices could even drop below 2,600 zloty per tonne CPT – equivalent to about 2,580 zloty per tonne ex-works.
The source forecast that any rebound in prices will only be possible at the end of May.
It was even rumored among Polish market participants that one mill producing rebar might even stop operations to reduce the chance of any further price falls.
The second distributor source said the mill was more likely to continue operating with a reduced output.
Speaking on the sidelines of the Dusseldorf Wire & Tube fair in Dusseldorf, sources also told Fastmarkets that any positivity in the construction sector resulting from the release of blocked European funds would boost demand for rebar.
In February, European Commission president Ursula von der Leyen announced that Warsaw would be able to access €137 billion in funds.
But sources told Fastmarkets that it would take some time – maybe until the end of this year – before the projects start being executed.
Another factor supporting the downtrend in Polish rebar prices was the strength of the Polish zloty, which makes imports more competitive, the second distributor source told Fastmarkets.
On Friday April 19, €1 was traded for 4.33 Polish zloty, while on April 12, €1 was 4.26 zloty.
Published by: Darina Kahramanova
