European long steel market stable as buyers return; mills eye higher prices
The European domestic long steel market remained largely steady Feb. 19, as mills continued their attempts to raise prices on higher production costs, while demand showed early signs of improvement.
“When you’re at rock bottom, buyers start placing orders,” said a mill source, noting that while activity had increased in the past 10 days, large-volume transactions remained scarce. Market participants remained in a “wait-and-see” mode, with expectations that real demand would pick up in March.
A trader reported rebar prices in Northwest Europe in the range of Eur625-630/mt delivered Benelux, slightly higher than previous levels, as buyers slowly returned to the market. A mill source confirmed tradable values for rebar at Eur560-570/mt FCA Northwest Europe.
In Southern Europe, the Italian rebar market remained weak despite efforts to raise prices. A distributor reported tradable values at Eur590-595/mt ex-works Italy, while a producer noted that demand remained subdued. Rising raw material costs, particularly for scrap, were expected to exert further upward pressure on prices by late February or early March.
The medium sections market followed a similar pattern, with tradable values reported at Eur735-745/mt ex-works Italy. A distributor reported tradable values for Category 1 sections at Eur790-810/mt delivered Italy. Despite seasonal slowdowns, sources anticipated price increases due to higher production costs, though actual demand remained average.
Concerns over the impact of potential US trade policy shifts and the EU’s Carbon Border Adjustment Mechanism continued to circulate. However, sources downplayed the immediate effects, as EU exports to the US remain limited.
Platts assessed rebar at Eur600/mt ex-works Northwest Europe, stable over the week, while medium sections were assessed at Eur790/mt delivered, also stable over the week.
