The European longs market registered different price trends this week, amid a general shortage of orders and a weak market mood, contrary to what would have been expected at the end of the Made in Steel event held in Milan on May 6-8.
The local rebar market in Italy reported a drop of about €20/mt compared to last week, with prices standing at €290-295/mt ex-works base (€555-560/mt ex-works including regular extras). "Made in Steel caused disorientation in the market more than once," a source commented, adding, "The next few weeks will be complicated." According to an Italian steel mill official, there is no room for a further drop in prices in the local market, and prices of finished products will follow the scrap price trend. If, as SteelOrbis has assumed, the scrap market in Italy were to rise towards the end of the month, it is likely that rebar prices would also recover.
In the meantime, however, end-users of long steel products are trying to take advantage of a stabilization in electricity prices and of the declines in the scrap market to lower their bids, and so the market seems to have found its balance for now.
As for wire rod, prices in the local market in Italy have varied slightly compared to the last levels recorded, but without showing any upheaval. Drawing quality has dropped from €635-650/mt delivered to €625-640/mt delivered, while mesh quality has increased slightly from €605-620/mt delivered to €610-625/mt delivered. "Following a lackluster quarter, Italian steel producers will try to support prices as much as possible," a source said, noting, "The saturation of safeguard quotas could help with this."
Continuing with wire rod, prices for drawing quality in central-eastern Europe have been reported at €645-660/mt delivered, whereas they have been reported at €625-640/mt delivered for mesh quality. In Germany, the same prices have been reported at €650-665/mt delivered and €615-630/mt delivered, respectively.
In Poland, as well as in the whole of central and eastern Europe, the drawing quality wire rod segment - linked to the automotive and mechanical sectors - marked a slowdown, whereas the mesh grade wire rod segment maintains a good performance, being linked to the construction sector.
Turning to exports, rebar prices from Greece have reported at €580/mt FOB, and wire rod prices at €570/mt FOB. These levels are unchanged from last week. As for rebar export prices from Spain, market sources reported that the levels stand at €560-570/mt FOB, down by €15-20/mt from the previous levels recorded by SteelOrbis.
In the import segment, prices of rebar and wire rod from Turkey stand at €515/mt and €525/mt CFR, respectively, up by about €5/mt compared to last week. Prices are calculated based on the European Central Bank's exchange rate of $1 = €0.89 (May 15).