According to market participants, the upward pressure in the European long steel market is becoming increasingly tangible. However, market fundamentals are not strong enough to suggest a long-term trend, as the price increases appear to be mostly cost-driven.
“The market in Germany is picking up and prices will certainly increase,” one market participant stated. “However, competition from traders in the local market is strong, as inventories were still full of material purchased at lower prices after the summer period,” another commented.
As for Poland, a wide gap has been reported between domestic rebar prices. Sources have reported prices from different mills ranging from a low of around €600/mt delivered to a high of around €655/mt delivered. On the one hand, cost pressure would push prices upward, and mills are reported to be seeking to raise both rebar and wire rod prices by around €20/mt. At the same time, however, demand remains weak and market uncertainty is preventing mills from taking a clear position.
Although September has historically been a month when attempts are made to raise prices following the end of the summer low season, this year energy, gas, transport and logistics costs are weighing more heavily on the market. “Visibility is very, very limited,” a source commented, “also because, at the end of the day, demand always determines the trend. Once the outlook for October becomes clearer, we will have a better idea of how the year will end.”
In the import segment, Turkey has increased prices by around €20/mt week on week for both rebar and wire rod, bringing them to €585-590/mt CFR and €590-600/mt CFR, respectively, though no sales have been reported. As for exports from Egypt, prices have been reported at around €560/mt CFR for rebar and €580/mt CFR for wire rod, up by €15-20/mt compared to the last reported levels on September 4.
€1 = $1.15
Author: SteelOrbis Editorial Team
