Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €590-610 ($657-680) per tonne on Wednesday, unchanged since September 11.
Demand was reported to be weak due to slow consumption in the construction sector and cheap imports.
“Imports from China, Indonesia and Algeria [put further pressure on] demand for domestic rebar,” a rebar producer said. “With high costs, Europe cannot compete cost-wise with exporting countries in Asia and North Africa.”
Offer prices were reported at €600-610 per tonne ex-works, but most sources reported workable prices at €590-600 per tonne ex-works.
“Mills are trying to put prices up, but the market is so calm, so customers don’t believe so much in price increases,” a trader source said. “Demand is low, and we fight for every single order.”
Scrap prices edged down week on week because of competitive billet prices from Asia, sources said.
China’s exports of steel billet (Harmonized System code 72071100) totaled 349,285 tonnes in August, up by 127% from 153,570 tonnes a year earlier and up by 53% from 228,983 tonnes in July.
Turkey was the biggest buyer of China’s billet in August, taking 204,411 tonnes, or 59%, of China’s total exports.
Fastmarkets calculated its daily iron ore 62% Fe fines, cfr Qingdao index at $96.07 per tonne on Wednesday, up by 6.67% from $90.06 per tonne a week earlier.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $360 per tonne on Wednesday, down by $5.19 per tonne week on week.
And Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €620-625 per tonne on Wednesday, up by €5-20 per tonne week on week from €600-620 per tonne.
Market participants reported weak consumption and a silent export market.
Southern European wire rod
Meanwhile, Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €620-630 per tonne on Wednesday, stable week on week.
Weak demand and high feedstock costs continued to weigh on European mills, sources said.
Published by: India-Inés Levy
