Mills attempted to reverse the downward price trend by raising their offer prices, but weak demand resulted in stable prices at low levels, sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €590-610 ($651-673) per tonne on Wednesday, narrowing downward by €10 per tonne from €590-620 per tonne one week prior.
Market participants reported ongoing weak demand and consequently minimal restocking among customers.
Mills attempted to raise offer prices due to high electricity costs, but these prices have not yet been accepted by the market.
“Rebar producers are trying to invert the price trend due to high energy costs. Demand remains low and at the moment customers don’t seem so interested in restocking,” one buyer source told Fastmarkets.
Some sources reported that mills were cutting production in a bid to stop downward pressure on prices.
“Now producers have decided to stop production in order to increase the price,” a second buyer source said.
Scrap prices edged upward week on week amid an inversion of price trend in the Asia-origin billet import market.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $365.19 per tonne on Wednesday, up by $5.32 per tonne week on week, but down by $8.49 per tonne month on month.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €620-640 per tonne, stable week on week.
Southern European wire rod
Fastmarkets’ price assessment of steel wire rod (mesh quality), domestic, delivered Southern Europe was €610-630 per tonne on Wednesday, down by €10 per tonne from €620-640 per tonne a week earlier.
Weak demand and high feedstock costs continued to weigh on European mills, sources said.
“Customers who were meant to buy have already restocked the quantities they need and now the new requests for wire rod at lower prices feel like pure market provocation to verify the downward price trend,” a wire rod producer source told Fastmarkets.
“The steel mills of Europe are coming from a long period of suffering due to low demand from the construction and automotive sector combined with high costs of energy,” the source added.
Published by: India-Inés Levy
