Mills increased their rebar and wire rod offer prices, but the higher wire rod prices have yet to be accepted, Fastmarkets understands – although mill sources said they were optimistic the higher levels will be implemented before Christmas closures.
In Spain, meanwhile, rebar prices remained unchanged, with market participants holding out against any higher offers.
Fastmarkets price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €570-600 ($591-612) per tonne on Wednesday up by €10-20 per tonne from €560-580 per tonne week-on-week.
The minimum level in Italy was up by €10 per tonne week on week, source said.
“The prices have increased so far this week and are still [rising],” a buyer source told Fastmarkets. “But some producers stopped production due to the high cost of electricity and scrap [and] we are closer to the Christmas holidays and, in a few days, mills will [start to] close until January.”
A second trader source said that demand was good last week and had not been so bad so far this week.
“The rebar price is now at €580-590 per tonne, but customers are still receiving material ordered last week at €560-570 per tonne,” the second trader source said.
“Maybe producers will increase prices again before the Christmas closures,” the second trader source added.
International scrap prices, meanwhile, have remained steady compared with last week, although they are down month on month because of slow steel sales, sources told Fastmarkets.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $333.00 per tonne on Wednesday, down from $336.95 per tonne a week earlier and from $361.37 per tonne in the first week of November.
Elsewhere in Southern Europe, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €580-600 per tonne on Wednesday unchanged week on week.
“The Spanish market has not changed, but we hear that German mills have increased their offer prices. Once the new levels are accepted in Northern Europe or Italy, the Spanish producers will [also] increase [their offers],” a producer source told Fastmarkets.
Southern European wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was €600-610 per tonne on Wednesday, stable week on week.
Mills increased offers by €10-20 per tonne in Southern Europe, but workable prices remained stable at €600-610 per tonne, sources told Fastmarkets.
“Mills want to increase prices but, so far, I am seeing a rolling over of November prices” a trader source told Fastmarkets. “We shall see if such increases will be achieved and, if yes, how long it will last.”
A second trader source said: “There have been pushes for increases, but no actual deals yet,” a second trader source told Fastmarkets.
And a wire rod producer source said there were reasons to be optimistic.
“We are facing a weak market, but we are seeing a willingness among customers to accept small price rises compared with November. This is probably because December is a period when it is more difficult to source supplies compared with other times of year when supplies are more abundant. So if the market continues to show positive signs, we will implement further price rises,” the source said.
