Polish rebar producers refuse to cut prices more despite zero demand, citing costs

Steel rebar prices in Poland remained flat during the week to Friday February 24 amid persistently slow demand, sources told Fastmarkets.
Producers in the region maintained offers at around 3,300-3,330 zloty ($738-744) per tonne CPT (3,250-3,300 zloty per tonne EXW) for 12 mm rebar, stable week on week.

Trading was close to zero during the assessment week, but local mills were reluctant to reduce their rebar prices further, claiming that offers are already at the cost line.

“In fact, mills claim that they need to increase prices because selling at current levels is loss-making. But there is no room for a price rise in such conditions, and neither is there room for a price drop due to costs. So the standstill continues,” a distributor in the nation said.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland was 3,250-3,300 zloty per tonne on Friday, stable week on week

Trading was very low in the nation amid poor end-user demand.

Some cut-and-bend companies started closing their rebar shops in mid-February due to low prices and high costs, several sources told Fastmarkets.

In the secondary market, rebar was offered and traded at prices around 3,350-3,400 zloty per tonne CPT, widening from 3,400 zloty per tonne seven days ago.

Italian producers were offering rebar for March delivery to Poland at €700 ($742) per tonne CPT, but only very limited volumes. Moreover, sources said that closer to the end of the assessment week, Italian mills withdrew from the market and were expected to come back with higher offers in March.

Published by: Julia Bolotova