Subdued consumption limits trading across Southern European steel longs markets

Buyers remained in wait-and-see mode in the Southern European rebar and wire rod market in the week to Wednesday October 16, Fastmarkets heard.

Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €570-590 ($620-642) per tonne, stable week on week.

Prices were stable across the Italian and Spanish rebar markets due to an uncertain outlook, Fastmarkets heard.

“Demand continues to be weak. Mills are trying to invert the price trend, but customers don’t believe in a price increase, so they prefer to stay in wait-and-see mode,” a buyer source said.

Prices could remain at these levels in the coming weeks, sources said.

Meanwhile, export offers from Italy were reported at $570 per tonne FOB to Switzerland and France.

Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €605-610 per tonne on Wednesday, stable week on week.

Sources reported unchanged market conditions in the Spanish rebar market.

“Prices are very stable, and there is no movement for the time being. Mills are trying to push for increased offers since last week. Customers did not accept these price rises; however, buyers need to restock and may need to accept these higher offers in the coming weeks,” a producer source said.

“Prices are more or less stable, but consumption is still weak,” a buyer source from the region said.

Southern European wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €600-620 per tonne on Wednesday, stable week on week.

Meanwhile, import offers continued to be reported at €580-590 per tonne CFR from Algeria, Turkey and Indonesia.

But import quotas for this quarter were reported to be full. As a result, the wire rod import market is expected to slow down until the new quota period begins on January 1, sources said.

Published by: India-Inés Levy