Prices rise in Northern European rebar market; wire rod prices stable
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe was €640-645 ($661-666) per tonne on Wednesday, narrowing upward by €30 per tonne from €610-645 per tonne week on week.
Mills raised their rebar offer prices in Northern European after reopening following Christmas closures. The market largely accepted these price rises, Fastmarkets heard.
Meanwhile, international scrap prices edged downward on a weekly basis but increased month on month, Fastmarkets heard.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $338.31 per tonne on Wednesday, down from $348.12 per tonne a week earlier and up from $325.00 per tonne a month ago.
The corresponding Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe was at €610-620 per tonne, stable week on week.
Italian rebar makers push up prices
Several Italian rebar producers are halting sales and seeking a €20/tonne ($20.8) increase for deliveries scheduled in January. Mills have already increased values this month and will continue to deliver material until the end of this week, Kallanish notes.
Current quotes from producers are positioned at €320/t base ex-works, applicable for orders delivered by the end of this month. For contracts executed in January, asking prices are set at €340-350/t base ex-works. This indicates a significant rise from the November asking price of €300/t base ex-works.
Current transactions, for December delivery, are positioned within the €300-320/t base ex-works range. A number of rebar mills are going to cease operations by the end of this week, with some having already suspended their facilities. Activity will resume on 7 January.
Current transactions are priced within the €560-580/t ex-works range, including size extras averaging approximately at €260/t. Domestic mesh contracts are at €410-420/t, excluding transportation costs – size extras are an additional €300/t, according to sources.
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Small price rises in Italian rebar market; wire rod stable despite higher mill offers
Mills increased their rebar and wire rod offer prices, but the higher wire rod prices have yet to be accepted, Fastmarkets understands – although mill sources said they were optimistic the higher levels will be implemented before Christmas closures.
In Spain, meanwhile, rebar prices remained unchanged, with market participants holding out against any higher offers.
Fastmarkets price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €570-600 ($591-612) per tonne on Wednesday up by €10-20 per tonne from €560-580 per tonne week-on-week.
The minimum level in Italy was up by €10 per tonne week on week, source said.
“The prices have increased so far this week and are still [rising],” a buyer source told Fastmarkets. “But some producers stopped production due to the high cost of electricity and scrap [and] we are closer to the Christmas holidays and, in a few days, mills will [start to] close until January.”
A second trader source said that demand was good last week and had not been so bad so far this week.
“The rebar price is now at €580-590 per tonne, but customers are still receiving material ordered last week at €560-570 per tonne,” the second trader source said.
“Maybe producers will increase prices again before the Christmas closures,” the second trader source added.
International scrap prices, meanwhile, have remained steady compared with last week, although they are down month on month because of slow steel sales, sources told Fastmarkets.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $333.00 per tonne on Wednesday, down from $336.95 per tonne a week earlier and from $361.37 per tonne in the first week of November.
Elsewhere in Southern Europe, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €580-600 per tonne on Wednesday unchanged week on week.
“The Spanish market has not changed, but we hear that German mills have increased their offer prices. Once the new levels are accepted in Northern Europe or Italy, the Spanish producers will [also] increase [their offers],” a producer source told Fastmarkets.
Southern European wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was €600-610 per tonne on Wednesday, stable week on week.
Mills increased offers by €10-20 per tonne in Southern Europe, but workable prices remained stable at €600-610 per tonne, sources told Fastmarkets.
“Mills want to increase prices but, so far, I am seeing a rolling over of November prices” a trader source told Fastmarkets. “We shall see if such increases will be achieved and, if yes, how long it will last.”
A second trader source said: “There have been pushes for increases, but no actual deals yet,” a second trader source told Fastmarkets.
And a wire rod producer source said there were reasons to be optimistic.
“We are facing a weak market, but we are seeing a willingness among customers to accept small price rises compared with November. This is probably because December is a period when it is more difficult to source supplies compared with other times of year when supplies are more abundant. So if the market continues to show positive signs, we will implement further price rises,” the source said.
Prices for Polish rebar inch lower amid poor trading
Fastmarkets’ weekly assessment for steel reinforcing bar (rebar), domestic, cpt Poland — which has been falling since July 19 — reached 2,600-2,640 zloty ($669-679) per tonne on Friday, down by 10-20 zloty per tonne from 2,610-2,660 zloty per tonne on September 6.
A local producer offered rebar to many Polish steel traders at 2,600 zloty per tonne CPT, sources told Fastmarkets. This urged other mills in the country to adjust their offers to similar price levels.
Buyers estimated the tradeable market level at 2,600-2,640 zloty per tonne CPT, depending on tonnages.
Lower scrap prices on the Polish market were also among the reasons for the decreasing rebar prices, Fastmarkets understands.
Scrap prices in September contracts decreased by 90-110 zloty per tonne, a distributor source said.
“Consumers in Poland are aware of these developments, and when the local mills try to offer higher prices, they do not accept these offers,” the source added. “No one is buying huge volumes now due to the decreasing rebar prices.”
Competitive imports also put additional pressure on domestic prices.
German material was heard offered to Poland at €610-615 ($673-679) per tonne CPT. For deliveries close to the border with Germany, the price could drop to €605 per tonne CPT, sources told Fastmarkets.
Offers for November-delivery rebar from Ukraine were heard recently at €570 per tonne DAP border for material with 10-32 mm diameter, which nets back to €600 per tonne CPT.
According to a second distributor source, slow demand, combined with strong competition from imports, will continue to put downward pressure on Polish rebar prices.
Italian rebar producers seek increases
Italian rebar producers are looking to implement price increases of €20-30/tonne ($22.1-33.2) in an effort to halt the price decline and regain some lost margins. Increased costs of production, especially in terms of energy, have put significant pressure on their financials.
According to buyers who spoke to Kallanish, the outlook for the end of the year remains pessimistic, with ongoing low downstream orders and reduced consumption. Buyers have no confidence that the latest hike attempt will be sustained. The distribution sector is adopting a cautious approach. Sources indicate prices for domestic rebar have remained steady in comparison to last month, but a price decline is expected.
Transaction values in the domestic market last week ranged from €290-300/t base ex-works, or €550-560/t ex-works effective. This includes an average of €260/t for additional size extras. Domestic mesh is at around €400/t, excluding transportation costs.
There is an additional charge of €300/t for size extras. Mills are requesting €320-330/t ex-works for rebar. Some steelmakers temporarily halted sales last week due to uncertainty surrounding pricing decisions. The market continues to underperform, with buyers reporting an influx of much cheaper long products from Turkey.
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