Downward pressure on the European long steel market has increased amid strengthening of the euro against the US dollar, price softening for scrap and declines in ex-
Turkey offers, while European long steel export offers have continued to move down.
This week
rebar export offers from southern
Europe are standing at €475-485/mt ($613-626/mt) FOB, while
wire rod offers from the region are at €495-505/mt ($639-651/mt) FOB. Meanwhile European steel mills are facing difficulties in competing with Turkish export offers, which are at $580/mt FOB for
rebar and at $595/mt FOB for
wire rod. In addition, strengthening of the euro against the US dollar has affected demand for European
rebar and
wire rod in the
Middle East and North
Africa region (MENA) negatively. Lately, Turkish origin long steel products have started playing an import role in Algerian market, the major export market of southern European mills.
Long steel importers from the MENA region have been keeping a close eye on scrap market and adopting a wait-and-see stance.
€1 = $1.29