The European longs market showed signs of a slight recovery this week, ahead of summer holidays and amid a slightly better sentiment. The market fundamentals remain the same, and this is why some market players still doubt that this recovery can last long.
In the local Italian rebar market, there were attempts of a rebound by at least €40-50/mt compared to last week’s prices that had been reported at €220-240/mt ex-works base (€485-505/mt ex-works including regular extras). Some sources reported that the new, higher price of €270/mt ex-works base (€535/mt ex-works including regular extras) has been accepted by the market, but some others claim that this is only producers’ attempt to secure orders at the higher end of the previous range, i.e. €240/mt ex-works base (€505/mt ex-works including regular extras), before their summer stoppages. In light of this, SteelOrbis has shifted its reference price range to €240-270/mt ex-works base (€505-535/mt ex-works including regular extras).
As per Italian wire rod, the market showed a less aggressive attitude, and final consumers’ requests remained on the low side, forcing sellers to decline their price levels by at least €5/mt. According to SteelOrbis information, new drawing quality wire rod prices in the Italian local market are standing at €610-620/mt delivered, whereas the same prices for mesh grade wire rod are standing at €590-605/mt delivered. The first range marked a €5/mt decline on the higher end of the range compared to the last price reported, while the second range marked the same decline on both ends.
Moving to other European countries, wire rod prices for drawing quality and mesh grade in Germany have been reported at €620-640/mt delivered and €590-615/mt delivered, respectively. This marks at least a €20/mt decline compared to mid-June levels. In Central-Eastern Europe, wire rod prices for drawing quality and mesh grade have been reported at €615-630/mt delivered and €590-615/mt delivered, respectively. Also in this case, there has been at least a €20/mt decline compared to mid-June levels.
As for exports, ex-Greece rebar and wire rod prices showed no changes, remaining at €575/mt FOB and €570/mt FOB, respectively. Ex-Spain rebar prices to UK ports also remained unchanged compared to last week at €545/mt FOB.
In the import market, Turkish rebar and wire rod have been reported at €490-495/mt CFR and €495-500/mt respectively, up by €5-10/mt compared to last week. Prices are calculated based on the euro-dollar exchange rate of €
1 = $ 1.16 (European Central Bank, July 17).
