The European longs market continues to see limited activity, with sentiment remaining mostly stable. However, market players' expectations are diverging. On the one hand, mills appear less willing to offer discounts, while, on the other hand, customers continue to postpone purchases.
According to market sources, trading activity remains limited in most European countries and negotiations are very slow. One player described the situation as “stable ahead of the holiday period”.
No changes have been reported in the local Italian rebar segment, while, according to some unconfirmed rumors, a large volume of rebar for export to the Balkan region was offered from Italy, presumably for September delivery, at an indicative price of €590/mt CIF.
However, material availability is not translating into significant sales. According to several players, customers still have high stock levels and demand remains weak. As a result, the market is unlikely to conclude new purchases at current price levels.
The wire rod segment is also showing a broadly stable trend in several European countries, with the local price in Poland being reported at €675-685/mt CPT. No changes have been observed in other European markets, and a generally stable trend is expected in the coming weeks.
Several players believe that weak consumption and the slowdown in construction activity remain the main obstacles to a price recovery, and that increasing pressure from energy and raw material costs may not be sufficient to support an upturn.
Logistics remains especially critical. Market sources report that road transport is facing serious difficulties due to the limited availability of trucks, while high rail costs are reducing the competitiveness of shipments. According to one player, “transport is having a significant impact on exports of all steel products”, further slowing down trade.
In the import segment, prices from Turkey have remained stable in euro terms compared to the previous week, with rebar at €540-550/mt CFR and wire rod at €550-560/mt CFR. As for North Africa, offers from Egypt have been reported at €530-535/mt CFR for rebar and at around €540/mt CFR for wire rod. Meanwhile, Algeria is currently focusing its offers on the domestic market.
The outlook for the coming weeks remains uncertain. Some market players believe that prices have reached a breakeven point and that increasing energy and logistics costs may support a rollover after the summer, while others continue to see downside risks linked to high stock levels and persistently weak demand.
€1 = $1.1476
