Southern European long steel market remains subdued, prices broadly stable

Trading remained slow in the Southern European rebar and wire rod markets in the week to Wednesday November 15, amid continued weak consumption, sources told Fastmarkets.

Mills looked to increase offer prices in early November, but these price rises have not been accepted by the market.

Participants remained uncertain of the price trend for the remainder of the year.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €600-620 ($652-673) per tonne on Wednesday, stable from November 8.

Slow demand resulted in thin trading in the Italian rebar market, sources told Fastmarkets.

Most sources expect small price rises in the coming weeks, given high feedstock costs and production cuts.

Workable prices were reported by buyers at around €600-610 per tonne ex-works, while offer prices were closer to €620 per tonne ex-works.

“The price in Italy now is stable at around €610 per tonne for rebar. The forecast for next week is probably €620 per tonne ex-works. The market is still flat but costs, like scrap and electricity, are increasing,” a buyer source said.

“Demand is low these days and customers don’t believe in price rises. Mills will look to raise prices to €620-630 per tonne ex-works before the Christmas holidays, but whether these offer prices will be realized remains to be seen,” a trader source said.

“The price of the steel is stable and market conditions are stable at the moment,” a second buyer source said.

At the same time, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €590-615 per tonne, also unchanged week on week.

Southern European wire rod
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €575-585 per tonne on Wednesday, down by €10-15 per tonne from €585-600 per tonne on November 8.

Prices dipped in the wire rod market.

Sources, however, forecast that prices rises are on the horizon given production cuts and the scarcity of import offers, Fastmarkets heard.

Published by: India-Inés Levy