The market accepted higher target prices in May, amid improved demand and high feedstock costs. And while demand continued to improve in early June, it has been subdued so far this week, sources said.
Fastmarkets price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €660-675 ($712-728) per tonne on Wednesday, stable week-on-week.
“Mills have maintained the higher prices established at the end of May, but the market has been quiet [this week] as everyone has restocked,” a producer source said.
And a trader told Fastmarkets: “Demand was good last week, but this week, the market seems to have gone to sleep again.”
Despite the reduction in demand, high feedstock costs mean the steel mills cannot lower their offer prices, sources said.
“With the increase in scrap and energy costs in May, all producers are very aware that the price increases [achieved in May] must be defended at all costs,” the producer source said.
International scrap prices have remained largely unchanged so far this week, with Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey, edging up to $377.40 per tonne on Wednesday, up by just 55 cents from $376.85 per tonne a week earlier.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €645-670 per tonne on Wednesday, unchanged week on week.
Wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was €625-640 per tonne on Wednesday widening up by €5 per tonne from €625-640 per tonne.
Market conditions remained mostly steady in the Southern European wire rod market in the week to June 12.
“Prices are largely unchanged,” a producer source said. “The flow of buying is relatively subdued now.”
Import offers from Egypt were reported at €570-580 per tonne CFR, Fastmarkets understands.
