Polish producers of steel rebar increased their prices in the week to Friday August 26 to account for rising costs, with buyers seen to be partially accepting the rise, market sources told Fastmarkets.
An offer from local mill CMC Zawiercie was reported at 4,100 zloty ($860) per tonne delivered (equivalent to about 4,050-4,070 zloty per tonne exw), with some transactions reported at that level during the assessment week.
Celsa Huta Ostrowiec, another local mill, was targeting a higher offer price of 4,300 zloty per tonne delivered (about 4,250-4,270 zloty per tonne exw), but this was not considered workable by buyers.
No new offer price has yet been reported from ArcelorMittal, but the mill was said to be considering a price rise, sources added.
In fact, Polish buyers estimated the tradeable level for rebar in the nation to be between 4,050 zloty per tonne exw and 4,150 zloty per tonne exw, depending on the tonnage and specifications.
As a result, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, exw Poland, was 4,050-4,150 zloty per tonne on Friday, up by 250 zloty per tonne from 3,800-3,900 per tonne on August 12.
The assessment was based on deals, the lower end of offers and buyers’ estimates of achievable prices.
Trading activity in the spot market has picked up this week, with buyers expecting more price rises to follow in September due to unpredictable energy costs.
On the other hand, the lack of new projects in the construction industry was casting shadows on further prospects.
“There is some restocking now, because people are afraid of more increases in September,” one trader said. “But on the other hand, everyone is worried about [consumption] prospects for October, because there is lack of big infrastructure projects in construction.”
Published by: Julia Bolotova
