Meanwhile, prices were stable in the wire rod market, with mills expected to set new prices in the coming week.
Fastmarkets’ price assessment of steel reinforcing bar (rebar) domestic, exw Italy was €660-680 ($706-727) per tonne on Wednesday, widening upward by €5 per tonne from €660-675 per tonne one week prior.
Market conditions remained stable in the Italian rebar market over the past week.
While some producer sources reported that small quantities had been purchased at €670-680 per tonne, other sources indicated that workable prices for trades were stable at closer to €660-670 per tonne.
“Increases have passed even if clients have not been so keen to order big quantities tied to the new increases,” one rebar producer source told Fastmarkets.
Despite increases through May and expected increases in the coming week, demand remained subdued.
Heavy rains were reported, with construction activity slowing down as a result.
“Demand is slow and this latest increase has passed but without a lot of movement from the market,” the producer source said.
“Mills are trying to increase prices, but at the moment they are not able to properly consolidate these higher offer prices,” a buyer source said.
Production stoppages could be extended through July and August, Fastmarkets heard. Restricting supply could help support further price rises in the market, according to sources.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €645-650 per tonne, stable week on week.
Prices in the Spanish rebar market were stable amid ongoing slow sales.
Southern European wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €625-640 per tonne on Wednesday, stable week on week.
Mills’ offers were unchanged in the Southern European wire rod market during the assessed week.
Producers were expected to publish new prices in the coming week, sources said.
“We will start to offer tomorrow and then will wait to see how the market responds to these prices,” a wire rod producer source said.
15% import quota
On June 25, in a bid to preserve diversity of supply, the European Commission confirmed its decision to impose a 15% cap on individual countries’ use of the EU import safeguard measures’ ‘other countries’ quarterly quota for wire rod and hot-rolled coil.
This news follows the European Commission’s decision to extend safeguarding duties for another two years.
The decision, to be enforced from July 1, came following a drastic increase in imports from Malaysia and Egypt since the end of 2023.
By one country using the ‘other countries’ quota, the export possibilities from other smaller suppliers have become limited, distorting trade flows, sources said.
But market participants in Northern and Southern Europe said the decision means that people who have already signed purchasing contracts from countries that have exceeded their 15% will have to pay large duties.
As a result, wire rod buyers were hesitant around committing to imported stock.
“With the new official quotas issued, a lot of import buyers from the EU who have already signed purchasing agreements will likely have to pay considerable duties if the country they are buying from have exceeded their individual 15% cap,” the wire rod producer source said.
“There are definite concerns around the new safeguarding rule,” a second wire rod producer source said.