Overall, the European longs market is showing mainly nominal upward price pressure: the increases sought by steel producers are supported by costs, while orders, buying interest and actual deal prices do not yet indicate a widespread recovery in demand.
According to market participants and as anticipated by SteelOrbis last week, German steel producers are aligned in seeking increases of around €20/mt, citing higher operating costs. However, these increases have not yet been reflected in transactions: “In fact, orders have been concluded at August prices, namely €640/mt delivered for rebar,” one market participant stated, adding, “The increase requests are mainly a signal to the market that prices will not decrease.”
In terms of demand, the situation in Germany appears slightly better than in Italy, mainly due to the launch of some infrastructure projects and defense investments, while the residential construction sector remains weak. Meanwhile, the German steel industry is determined to keep the government’s attention focused on securing reliable funding for industrial competitiveness and the green transformation as it prepares to submit its draft federal budget for 2027 to the Bundestag.
As for the Polish market, no major movements have been reported, and the overall sentiment remains cautious amid import pressure.
Sentiment in Spain is also rather weak. According to one market participant, “There could be a price rebound of around €10-15/mt, but it will mainly be due to higher costs and support from the export market outside the European Union,” he stated. “The wire rod segment is flooded with imports,” he also noted. According to one source, current drawing quality wire rod prices in the Spanish market are standing at €675-690/mt delivered, while mesh quality wire rod prices are at €660-670/mt delivered. Overall, the same source reported limited buying interest in the domestic market. As for exports, the rebar price to Irish and UK ports has been reported at €630/mt FOB, down by €40/mt compared to the latest indications.
In the import market, offer prices from Turkey continue to increase, although they are attracting limited interest in the European Union. According to reports, both rebar and wire rod for September-October shipment have increased by €5/mt week on week, standing at €565-570/mt CFR and €570-580/mt CFR on average, respectively. Offer attempts above the upper end of the range have also been reported for both products, but such levels do not seem workable under current market conditions.
€1 = $1.16
Author: SteelOrbis Editorial Team
