The European longs market remained stable again this week, due to the scarce demand and the immobility of prices. Some declines have been recorded in import markets, particularly from Turkey, where the ongoing conflicts in the Middle East have affected both local and export markets.
In particular, the local rebar market in Italy has recorded unchanged prices at €240-250/mt ex-works base (€500-510/mt including regular extras), and there was no improvement in demand in the northern part of the country. On the contrary, rebar demand in Southern Italy seems decent. The rumors of production stoppages by steel mills have been circulating among end users as well, and this could likely give a boost to finished steel prices. This is, however, only hypothetical, as the reality at the moment shows a static market, imprisoned by a generalized weakness.
"Everything is still," said the representative of an Italian steel mill referring to wire rod sales. "It is also true that after the middle of the month it is difficult for prices to move, but I don't expect major changes in July," he concluded. Prices in the local wire rod market in Italy are therefore stable at €620-635/mt delivered for drawing quality wire rod and at €605-620/mt delivered for mesh grade wire rod, unchanged week on week.
As for export markets, the average prices of rebar and wire rod from Greece have been reported at €575/mt FOB and €570/mt FOB respectively, also unchanged week on week. Rebar export prices from Spain to UK ports have been reported at €550-555/mt FOB, slightly up by €5/mt in the upper end of the range compared to last week.
The import markets for rebar and wire rod from Turkey fell by about €5/mt week on week in the upper end of the range, standing at €495-505/mt CFR and €505-510/mt CFR, respectively. As far as Egypt is concerned, import prices have been reported at €505/mt CFR for rebar and €520/mt CFR for wire rod, while the same prices from Algeria have been reported at €500-510/mt CFR for rebar and about €525/mt CFR for wire rod. Finally, wire rod prices from Indonesia to Europe have been reported at around €500/mt CFR.
€1 = $1.15 (European Central Bank, June 18)