Steel giant ArcelorMittal has announced a €40/mt increase for new orders for long steel products such as rebar, wire rod, and beams in Europe. This decision is motivated by the increase in global raw material costs and the unsustainability of current price levels. However, several sources are skeptical: "The market is not ready yet. We don’t see an immediate upturn," one operator claimed. On the other hand, import offers, particularly from Turkey and Egypt, are effectively on the rise.
Local rebar in Italy continues to show the same weakness that has characterized it for months, with demand still sluggish and orders "barely sufficient". The tradable price range this week, as in the previous one, has been reported at €280-300/mt ex-works base (€545-565/mt ex-works including regular extras) and sources indicate that production stoppages are expected at the end of the month.
The European wire rod market seems to be experiencing an increase in requests, particularly from buyers avoiding Turkey due to quota restrictions and high prices. This increase could present a growth opportunity, but it remains to be seen whether this trend will continue.
Ex-Italy and ex-Greece export offers have remained stable: ex-Italy rebar offers have been indicated at €560-570/mt FOB by sea and €550-560/mt ex-works by truck; ex-Greece rebar has been confirmed at €590/mt FOB and wire rod at €600/mt FOB, though not all suppliers are currently offering.
Ex-Turkey and ex-Egypt offers are increasing. Ex-Turkey offers have reached around €590-600/mt CFR southern Europe for rebar and €600/mt CFR for wire rod, compared to last week’s €575-585/mt CFR and €585-595/mt CFR, respectively. Meanwhile, ex-Egypt rebar has been reported at €560-570/mt CFR and Egyptian wire rod at €570-585/mt CFR, up from last week’s €550-560/mt CFR. This increase reflects rising raw material costs among other difficulties, but it remains to be seen whether the European market will accept these levels.