Prices were broadly unchanged in the Southern European wire rod and rebar markets during the week to Wednesday February 26 amid high energy costs but weak demand, Fastmarkets heard.
Slow demand resulted in customers showing resistance to price rise, while mill margins remained under pressure from high input costs. Mills are expected to target higher offers in the coming week, sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €590-645 ($619-677) per tonne on Wednesday, widening downward by €10 per tonne from €600-645 per tonne one week prior.
Deals were reported at €590 per tonne exw.
Market indications were in the region of €590-645 per tonne exw in Northern Italy, with some higher offers reported at €630-655 per tonne exw. These higher offers were not considered workable by the market.
Increasing energy costs have pressured mill margins, sources said.
“[The Italian market] looks to be stable both from the point of view of demand, deals closed and offer levels,” one buyer source told Fastmarkets. “From my side, I estimate a price rollover…Rumors in continental Europe are from stable prices to increasing prices for March sales. We will see.”
“Rebar prices are slowly decreasing. We are today at €600 per tonne, but someone is offering large quantities at €10 per tonne lower. Mills intend to put up the price, but the market is not ready to accept these higher prices,” a second buyer source said.
Demand was reported to be relatively stable.
“Demand is not so bad. I think we will close February with the similar demand levels to January,” the second buyer source added.
Weak appetite because of seasonality could begin to lift with the approach of spring, but there was no short-term improvement in consumption from the construction sector, according to some sources.
Energy costs dramatically rose between January and February, with current price levels not seen since 2022, sources said.
Bearish sentiment regarding low consumption and high costs was echoed in the short-range outlook published by the International Rebar Producers and Exporters Association (IREPAS) on February 7.
The outlook highlighted challenges for the European steel market due to ongoing low demand and high costs in the region, combined with increasingly protectionist measures elsewhere.
“The EU steel market is suffering from continuing low demand for long products, with European mills locked in a cycle of poor demand and high costs. The construction market in most EU countries is still very slow due to seasonal reasons, but also in general due to much less demand from investors,” the outlook said.
Turkish scrap prices edged upward week on week amid steelmakers’ restocking for March.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $355.54 per tonne on Wednesday, up from $351.58 per tonne a week earlier.
Despite Turkish mills still struggling with low finished steel sales in their domestic markets, they continued to restock scrap for March.
Meanwhile export rebar prices were reported from Southern Europe at €605-610 per tonne FOB.
A deal was reported by an Italian producer at €605 per tonne FOB.
Meanwhile, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €630-640 per tonne on Wednesday, narrowing upward by €10 per tonne week on week from €620-640 per tonne.
Meanwhile, Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €585-600 per tonne on Wednesday, down by €20-25 per tonne week on week from €610-620 per tonne.
A deal was reported by an Italian producer at €600 per tonne.
Market participants in Spain pegged the market at lower levels of €585-600 per tonne.
Higher offers of €605-610 per tonne were reported in Italy after the assessment deadline with mills targeting price rises for March sales, Fastmarkets heard.
Wire rod import offers were reported at €630 per tonne from the Far East, but these offers were considered unworkable.
Market participants indicated the market at €595-605 per tonne.
