Trading activity is usually limited during the European summer, but local mills kept their offers for long steel products unchanged because of high production costs, Fastmarkets understands.
Rebar
Polish mills offered rebar in the range of 2,750-2,800 zloty ($692-705) per tonne CPT, the same price level recorded in the previous week.
Market participants estimated the tradeable market levels in the range of 2,730-2,750 zloty per tonne CPT.
According to buyers, lower prices at 2,710-2,720 zloty per tonne CPT can be achieved for volumes exceeding 1,000 tonnes. These levels, however, were not included in the final assessment because they did not comply with Fastmarkets’ methodology.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland was 2,730-2,750 zloty per tonne on Friday, unchanged from the previous week.
Some buyer sources reported improved demand for rebar in the first days of July compared to the beginning of June.
Wire rod
Market participants were not optimistic about the Polish low-carbon drawing quality wire rod market.
According to a distributor source, the summer holidays lull could already be felt in the market because trading remained limited.
“There is no restocking and the demand is even lower than in the previous month,” the source told Fastmarkets.
Despite the slow demand, Polish mills kept their offers for low-carbon drawing quality wire rod unchanged at 2,900-3,000 zloty per tonne CPT.
Sources estimated the workable market level at 2,800-2,900 zloty per tonne CPT, however.
Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland was 2,800-2,900 zloty per tonne on Friday, unchanged week on week.
Import offers of mesh-grade wire rod from Ukraine were heard at €600 ($648) per tonne DAP border.
Increased interest from North African Exporters
The long steel products market in Poland and the Baltic countries has attracted more interest from North African exporters, sources said.
Companies from Egypt and Algeria plan to increase their exports to the region and are taking steps to comply with local markets’ requirements, Fastmarkets understands.
For example, Egyptian steel producer Elmarakby obtained a Polish national certificate for rebar with diameters from 8mm to 32mm steel grade B500SP, the company said on Wednesday, This means that Elmarakby’s products comply with the Polish standard for rebar PN-H-93220:2018-02, thus increasing the company’s opportunities to export to Poland.
A European producer source said that Algerian Qatari Steel Company received similar certificates for rebar from Poland and some Baltic nations last year.
The producer source added that Algeria would probably try to raise its exports to Baltic countries, and their material could also reach neighboring Poland.
Imports from these countries, however, will be limited by the new safeguard measures imposed by the European Commission. According to the new adjustments, a 15% cap for wire rod is to be applied per country over the tariff rate quota volume initially available in each quarter.
Import quotas for wire rod from Algeria, Egypt, Malaysia, Indonesia and India are usually exhausted in the first week of each 3-month period, Fastmarkets reported.
For example, the total tonnage of Algerian wire rod awaiting allocation stood at 32,016 tonnes on July 4, much higher than the 18,413 tonnes it would be able to trade under the “other countries quota” for July-September, including the 15% cap per single country, according to EU customs data.
As of the same day, Egypt had 13,181 tonnes of wire rod awaiting allocation, while the total allowance for the period ending on September 30 was 18,413 tonnes.
If the quota is exceeded, buyers can custom clear only the tonnages that fit the quota and store the rest in the port, which entails substantial storage costs, sources said. Alternatively, buyers can pay a safeguard duty over the excess tonnages.
Published by: Julia Bolotova, Darina Kahramanova
