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
