Polish steel rebar producers tried to raise prices during the week to Friday June 30, but slow end-user demand remains a key challenge, sources told Fastmarkets.Official offer prices from two local producers during the assessment week were heard at 2,750 zloty ($672) per tonne CPT. This is roughly equivalent to 2,700-2,730 zloty per tonne EWX, and compares with 2,650 zloty per tonne CPT in mid-June.
Transaction prices, however, were still reported at lower levels – around 2,700 zloty per tonne CPT (2,650-2,670 per tonne EXW).
Sources reported a slight pick-up in trading earlier in the week, after mills indicated that they would raise their prices, but, in general, traded volumes remained limited.
“There were some signs of better demand [after mills had announced plans to raise prices] but the end of the week shows that buyers do not believe [there is any reason to support] any price hikes,” a distributor said.
Chronically weak demand from the construction industry — a major consumer of rebar — was one of the main factors behind the downtrend in the Polish rebar market in the past month.
“In Poland, the main problem is that we are still waiting for the EU funds. We already know what we want to build. Only, Poland and Hungary are still waiting for these funds. And it is unlikely that we [will] receive it until the end of the year,” a trading source in Poland said.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland was 2,650-2,700 zloty per tonne on Friday, up by 50-70 zloty per tonne from 2,600-2,630 zloty per tonne on June 23.
In the secondary market, rebar prices were reported at 2,700-2,750 zloty per tonne CPT, compared with 2,680-2,700 zloty per tonne CPT in the preceding week.
Import rebar offers to Poland were up by about €10-15 ($11-16) per tonne week on week.
Rebar offers from Hungary and Germany for July delivery were heard at €610-615 per tonne CPT Poland during the assessment week.
Italian producers were aiming for €620 per tonne CPT for July delivery rebar.
Published by: Julia Bolotova