Polish rebar, wire rod prices slightly lower despite mills’ attempts to push for higher offers
Rebar
Official offers from Polish mills for March-production rebar were heard at 2,700 zloty ($699) per tonne CPT, according to sources.
One producer source told Fastmarkets they could drop the target level to 2,650 zloty per tonne CPT in some cases, citing this as the lowest level they would accept due to high production costs and rising scrap prices in the Polish market.
But some transactions were reported at 2,620-2,630 zloty per tonne CPT during the assessment week, Fastmarkets understands.
Buyer estimations for the tradeable market level were at 2,620-2,650 zloty per tonne CPT.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland was 2,620-2,650 zloty per tonne on Friday, down by 20-30 zloty per tonne from 2,650-2,670 zloty per tonne on February 28.
Prices for rebar in the Polish secondary market were heard at 2,650-2,700 zloty per tonne CPT.
One distributor source told Fastmarkets that demand for rebar remained comparatively weak and although slightly better compared with the last weeks of February.
“Only the nice weather is helping for now,” the source added.
Regarding imports, one Ukrainian supplier was heard to have stopped offering rebar to Poland due to some mill repairs.
Wire rod
Polish mills were heard offering March-production low-carbon drawing quality wire rod at 2,800-2,900 zloty per tonne CPT, sources told Fastmarkets.
No fresh transactions were heard during the assessment week.
A second distributor source told Fastmarkets that trading had improved slightly compared with the end of last year.
Fastmarkets sources estimated the workable market level at 2,750-2,850 zloty per tonne CPT, with the lower end of the price range considered tradeable for relatively big volumes of around 300 tonnes.
Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland was 2,750 -2,850 zloty per tonne on Friday, widening downward by 50 zloty per tonne from 2,800-2,850 zloty per tonne on February 28.
Local producers were heard offering mesh-grade wire rod at 2,680-2,700 zloty per tonne CPT, Fastmarkets understands.
In terms of imports, Ukraine was offering mesh-grade wire rod to Poland at €590 ($637) per tonne delivered on the border.
Italy was heard offering low-carbon drawing quality wire rod to Poland at €655-680 per tonne delivered, depending on the destination.
Some offers of low-carbon drawing quality wire rod from the Czech Republic to Poland were heard at €680-700 per tonne delivered.
Prices broadly unchanged across the Southern European steel longs market
Prices were broadly unchanged in the Southern European wire rod and rebar markets during the week to Wednesday February 26 amid high energy costs but weak demand, Fastmarkets heard.
Slow demand resulted in customers showing resistance to price rise, while mill margins remained under pressure from high input costs. Mills are expected to target higher offers in the coming week, sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €590-645 ($619-677) per tonne on Wednesday, widening downward by €10 per tonne from €600-645 per tonne one week prior.
Deals were reported at €590 per tonne exw.
Market indications were in the region of €590-645 per tonne exw in Northern Italy, with some higher offers reported at €630-655 per tonne exw. These higher offers were not considered workable by the market.
Increasing energy costs have pressured mill margins, sources said.
“[The Italian market] looks to be stable both from the point of view of demand, deals closed and offer levels,” one buyer source told Fastmarkets. “From my side, I estimate a price rollover…Rumors in continental Europe are from stable prices to increasing prices for March sales. We will see.”
“Rebar prices are slowly decreasing. We are today at €600 per tonne, but someone is offering large quantities at €10 per tonne lower. Mills intend to put up the price, but the market is not ready to accept these higher prices,” a second buyer source said.
Demand was reported to be relatively stable.
“Demand is not so bad. I think we will close February with the similar demand levels to January,” the second buyer source added.
Weak appetite because of seasonality could begin to lift with the approach of spring, but there was no short-term improvement in consumption from the construction sector, according to some sources.
Energy costs dramatically rose between January and February, with current price levels not seen since 2022, sources said.
Bearish sentiment regarding low consumption and high costs was echoed in the short-range outlook published by the International Rebar Producers and Exporters Association (IREPAS) on February 7.
The outlook highlighted challenges for the European steel market due to ongoing low demand and high costs in the region, combined with increasingly protectionist measures elsewhere.
“The EU steel market is suffering from continuing low demand for long products, with European mills locked in a cycle of poor demand and high costs. The construction market in most EU countries is still very slow due to seasonal reasons, but also in general due to much less demand from investors,” the outlook said.
Turkish scrap prices edged upward week on week amid steelmakers’ restocking for March.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $355.54 per tonne on Wednesday, up from $351.58 per tonne a week earlier.
Despite Turkish mills still struggling with low finished steel sales in their domestic markets, they continued to restock scrap for March.
Meanwhile export rebar prices were reported from Southern Europe at €605-610 per tonne FOB.
A deal was reported by an Italian producer at €605 per tonne FOB.
Meanwhile, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €630-640 per tonne on Wednesday, narrowing upward by €10 per tonne week on week from €620-640 per tonne.
Meanwhile, Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €585-600 per tonne on Wednesday, down by €20-25 per tonne week on week from €610-620 per tonne.
A deal was reported by an Italian producer at €600 per tonne.
Market participants in Spain pegged the market at lower levels of €585-600 per tonne.
Higher offers of €605-610 per tonne were reported in Italy after the assessment deadline with mills targeting price rises for March sales, Fastmarkets heard.
Wire rod import offers were reported at €630 per tonne from the Far East, but these offers were considered unworkable.
Market participants indicated the market at €595-605 per tonne.
Polish rebar, wire rod prices increase on bullish sentiment among producers
But buyers shared mixed expectations about the future market development.
Rebar
Polish mills were heard offering March production rebar at 2,700 zloty ($677) per tonne CPT during the assessment week. This is also largely the level at which the material was offered in the previous week.
Industry sources told Fastmarkets that mills were quite firm on their offers, willing to grant some discounts by just 20-30 zloty per tonne.
“With these offer levels, local mills are trying to compensate for the high scrap and energy prices in the domestic market,” a distributor source told Fastmarkets.
According to industry sources, the Polish market for domestic scrap has become more active recently with some rebar producers needing to replenish their stocks. Besides, the steel slab and plate producer Huta Czestochowa has resumed operations recently and has also started to purchase scrap more actively.
This increased the demand in the domestic market and pushed the local scrap prices higher by 90-100 zloty per tonne compared to the previous month.
Fastmarkets’ sources estimated the workable market level for rebar at 2,650-2,670 zloty per tonne CPT, with the lower end of the price range considered achievable for bigger volumes.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland, was 2,650-2,670 zloty per tonne on Friday, up by 20-30 zloty per tonne from 2,620-2,650 zloty per tonne on February 14.
But industry sources shared mixed opinions on how the market will develop.
“It seems that the sentiment has improved, and most market participants expect that rebar prices will be stable to slightly higher in the short run,” the distributor source told Fastmarkets.
Prices were also supported by slightly better demand.
“Even in Germany, there is not such a big increase in rebar prices,” the source added.
A producer source confirmed that demand was “not low” and “much better now” than in January.
But a second distributor source was more pessimistic.
“I think the prices will fall again by mid-March. The demand will improve more significantly in May/June, when [more] money from EU funds [are expected to enter the Polish economy],” the second distributor said.
In terms of imports, German mills were heard offering rebar to Poland at €630 ($659) per tonne delivered.
Wire rod
Prices for Polish low-carbon drawing quality wire rod also increased during the assessment week, supported by bullish sentiment among producers.
Polish mills were officially offering the material at 2,900 zloty per tonne CPT.
Fastmarkets’ sources estimated the workable market level at 2,800-2,850 zloty per tonne CPT.
One buyer source told Fastmarkets that for small volumes Polish mills would even insist on 2,900 zloty per tonne CPT.
Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,800-2,850 zloty per tonne on Friday, up by 30-50 zloty per tonne from 2,750-2,820 zloty per tonne on February 14.
Regarding imports, offers for mesh-grade wire rod from Ukraine to Poland were heard at €620 per tonne delivered Poland.
Offers of low-carbon drawing quality wire rod from Italy to Poland were heard at €660 per tonne delivered, but according to sources a discount of €10 per tonne could be achieved in negotiations.
The Czech Republic was heard offering low-carbon drawing quality wire rod to Poland at €660-680 per tonne delivered.
EU wire rod consumption ‘crisis’ to persist
Sluggish European wire rod consumption is expected to persist this year, with steelmaking and processing sector sources indicating a lack of recovery signals.
Southern Europe steelmakers are reducing output en masse, to balance demand and supply. A northern European producer is also reportedly in the process of significantly cutting production and is contemplating mothballing one of its plant for several months.
European prices are stable, despite steelmakers needing to improve margins. The market has experienced persistent stagnation over the last eight months, marked by low order volumes, higher production costs, robust scrap prices, and rising energy levels.
An entire year like this, with limited consumption and high costs, would be “a disaster” for the upstream sector, according to two Italian mill sources who spoke to Kallanish. “Steel producers are under pressure to raise prices; on the other hand, our customers downstream are requesting reductions,” a wire rod processor says. “Italy is currently experiencing its 22nd consecutive month of declining industrial production.”
A major EU steelmaker is reportedly evaluating a potential price increase of €50/tonne ($51.2) for drawing-quality wire rod for the second quarter. “Downstream prices are showing weakness. How can consumption be reactivated? No one knows and there are no indications of recovery other than temporary restocking patches,” the processor says.
“Even if the war ends in Ukraine, we will need at least a couple of years to restore normal prices and flow of cheaper energy and raw materials. The United States is currently selling energy at a price that is five times higher than what was previously paid by European nations before the war, and it’s in their interest to maintain this situation,” a mill source comments.
A crisis is temporary, he explains. However, the European industry has been experiencing a structural transformation for years, with the exception of 2021 and 2022. Production has been falling amid declining consumption.
“During the 1990s, Europe produced 200 million tonnes. Now, we are scarcely able to reach 100,” the mill source continues. “Italy’s production did not even surpass 20mt last year. This is not a crisis. This marks the end of a system. The factors that contributed to the strength of Germany, such as the availability of inexpensive energy, will not be re-established. We must adapt to a new way of operating that involves diminished profits and volumes. Making steel in Europe is no longer sustainable.”
“Europe will not abandon its ETS standards, and politics does not intend to ensure the industry’s survival in the face of competition from the United States, China, and India. The environmental objectives of the European Union are unattainable. It is impossible today to identify any elements that would indicate a potential recovery,” he concludes.
Although wire rod derivatives saw acceptable consumption and prices last year, with relatively lengthy lead times and minimal imports, standard wire rod consumption and prices have significantly reduced in Europe.
In the most recent negotiations for Q2 sales of wire rod derivatives, the processor source says prices were not the primary concern, as companies are busy trying to survive. Buyers are aware that steelmakers will not reduce prices due to high costs, and processors are aware that they cannot request price increases in this market. Consequently, wire rod derivatives and standard wire rod levels should remain stable.
Drawing-quality wire rod prices in Italy go from €600-630/t delivered depending on volume. Northern European material also remains unchanged amid low demand. Domestic transaction values for drawing-quality wire rod are at €620/t ex-works and mesh-grade wire rod is at €610/t. Producers are asking for €625/t ex-works, on average, for mesh-quality rod.
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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.
Subdued consumption limits trading across Southern European steel longs markets
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.
Polish steel rebar, wire rod prices decrease further on poor demand
Wire rod
Polish mills announced lower offers for October-delivery low-carbon drawing quality wire rod, at 2,700-2,750 zloty ($692-705) per tonne CPT, sources told Fastmarkets.
In comparison, at the beginning of September, similar material was on offer at 2,800-2,850 zloty per tonne CPT.
But persistently low demand has made producers revise their offers downward, Fastmarkets understands.
Fastmarkets’ sources estimated the tradeable market level at 2,650-2,700 zloty per tonne CPT.
As a result, Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,650-2,750 zloty per tonne on Friday, decreasing by 50 zloty per tonne from 2,700-2,800 zloty per tonne on September 27.
“Demand is still very weak, and there is no restocking,” a distributor source told Fastmarkets. The source added that the situation remained unpredictable due to the conflicts in Ukraine and the Middle East.
Import offers of low-carbon drawing quality wire rod from Italy to Poland were heard at €630-650 ($695-717) per tonne CPT, depending on the destination.
From Ukraine, offers of mesh-quality material were heard at €600-610 per tonne CPT.
Moldava-origin mesh-quality wire rod was on offer at €620 per tonne CPT.
Rebar
Prices for Polish rebar also decreased during the assessment week, and were heard at 2,530 zloty per tonne CPT.
In comparison, at the beginning of the previous month, Polish rebar was on offer at 2,610-2,660 zloty per tonne CPT.
Market participants estimated the tradeable market level for the assessment week to be 2,500 zloty per tonne CPT.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland, was 2,500-2,530 zloty per tonne on Friday, down by 70-75 zloty per tonne from 2,570-2,605 zloty per tonne on September 27.
In the secondary market, prices for rebar from stock were heard at 2,620-2,650 zloty per tonne CPT, depending on the region.
Demand for rebar in Poland also remained weak, according to Fastmarkets’ sources.
The completion of some significant construction projects will be postponed until next year, Fastmarkets understands.
“Some infrastructure projects, which are supposed to be funded by the EU, will start no sooner than the first half of 2025,” a second distributor source told Fastmarkets.
Besides, it was not clear yet whether the government’s program to grant low-interest-rate loans to first-time home buyers would continue. The program was expected to support the residential construction sub-sector.
“The government does not even know what form the program would take. I doubt it will come into force in the first half of next year,” the second distributor said.
Polish domestic rebar prices were still under pressure from imports, Fastmarkets understands. Import offers of rebar from European suppliers to Poland were heard at €600-620 per tonne CPT.
Steel rebar, wire rod prices stable in Poland amid lack of activity
Rebar
The most recent rebar offers from three local producers were heard at 2,660-2,680 zloty ($656-661) per tonne CPT (about 2,630-2,650 zloty per tonne ex-works), while estimates of workable prices were in the range of 2,600-2,650 zloty per tonne ex-works, depending on the tonnage.
No fresh bookings had been heard by the time of publication.
Consequently, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland, was 2,600-2,650 zloty per tonne on August 11, stable week on week.
Wire rod
Recent offers from local steelmakers of low-carbon, drawing-quality wire rod were reported at 2,800-2,900 zloty per tonne CPT, unchanged since late July, but the upper end of that range was considered unworkable by most customers.
Workable prices were estimated to be around 2,750 zloty per tonne CPT, with some deals from a key producer heard at this price.
Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,750-2,800 zloty per tonne on August 11, unchanged over the past month.
Offers of wire rod imports into Poland were also limited in the assessment week, with European mills out of the market for maintenance work or other stoppages.
Ukraine-origin mesh-quality wire rod was heard to be available at €600-610 ($660-671) per tonne CPT, depending on the supplier.
Published by: Vlada Novokreshchenova
