The local rebar and wire rod prices in Poland have continued rising this week, rather reflecting the overall longs market situation in the EU than the positive demand and business environment. While the demand for longs in the country remains low, the concerns regarding the energy crisis have been constantly rising. In a situation when the market players are trying to evaluate the consequences of the announced and expected production cuts in the EU, and possible solutions for the potential supply problem, the domestic producers have pushed their prices up, particularly in Poland.
Generally, the situation in the Polish market is similar to the one in the key EU longs producing countries – the prices are being pushed up from the increased production costs, and not by the higher demand. “The most likely scenario is that scrap will go down and demand will be so low that mills will have to lower prices at the end of October,” a source in Poland commented.
According to sources, the domestic rebar price in Poland is now at €930-935/mt CPT, up by €30/mt over the week. In the wire rod segment, the Polish producers are offering wire rod at €940-975/mt CPT for the drawing quality material, up by at least €40-50/mt over two weeks. Import offers for wire rod from Italy have been reported at €920/mt CPT Poland, while Algeria has been trying to sell at €840-850/mt CPT. Turkish mills, according to sources, offered €840/mt CFR.