The European longs market has shown mixed trends this week, as traders continue to wonder about the possible effects that CBAM and safeguard quotas will have in the coming months.
As for rebar, some producers in Italy have tried to raise prices by offering new official levels at €260-270/mt ex-works base (€525-535/mt ex-works including regular extras), but several sources have reported that orders actually continue to be placed at the previous levels of €230-250/mt (€495-505/mt ex-works including regular extras). "The market response [to the request for an increase] was quite cold at the beginning, but we have concluded some orders," a source at an Italian steel mill said. A source from another local mill, on the other hand, said he believes that the official levels are not workable. "Requests for a rebar price increase are not supported by other key factors such as scrap and energy, so we will have to see how long they hold," the same source commented.
A similar situation has been observed in Germany, where an increase in rebar prices is being attempted and is supported by downstream users who have already built up stocks and are unlikely to welcome a new price decline.
Regarding CBAM, a source at an Italian mill said that it is "a complex topic, which hides lights and shadows. I have heard different opinions about it, but first of all I think it burdens companies with too much bureaucracy. In my opinion, safeguard quotas are a much simpler, more defined and effective tool".
in the local wire rod market in Italy, there have been no changes compared to last week's levels, and prices have remained at €575-590/mt delivered for drawing quality and €550-565/mt delivered for mesh quality. However, one market player has reported that he “has observed some movement", adding that he has received order requests for above-average quantities. In this regard, he believes that it could be an attempt by some customers to stockpile in view of the new safeguard and CBAM regulations.
As for the export market, rebar prices from Spain to UK ports have remained unchanged compared to last week at around 540 €/t FOB, while no changes have been recorded for Greek material.
In the import market, rebar and wire rod dollar-based prices from Turkey have decreased by $5/mt week on week. Considering the euro-dollar exchange rate being stable at 1.16 compared to last week, CFR prices for Turkish rebar in the European Union have in turn recorded a decrease by €5-10/mt, standing at €495-500/mt. Ex-Turkey wire rod prices for the same destination have rolled back to €505/mt CFR, down by €5/mt week on week on the higher end of the range, but stable on the lower.
