The European longs market has slowed down overall this week due to the drop in demand ahead of the Christmas holidays. However, uncertainties regarding the implementation of CBAM starting from January 1, 2026, continue to emerge.
The price increases attempted in the local rebar market in Italy which had been previously reported by SteelOrbis did not last, and prices in the latest negotiations have been reported at €290-300/mt ex-works base (€550-560/mt ex-works including regular extras). "Let's close [the year] like this and talk about it again in the new year," a source commented. A source at an Italian mill has reported that some customers who had availability have preferred to pile up volumes at current prices before the new year, as he estimates that increases in import prices due to the CBAM regulation from 2026 will have a significant impact on prices as early as the first days of the year. In fact, although the first submission of CBAM certificates corresponding to declared emissions for goods imported in 2026 must be carried out by May 31, 2027, these certificates will have to be purchased starting from January 1, 2026.
The same source also said he fears that the increase in import prices - especially of semi-finished products from China - could in turn cause a rise in scrap prices in Europe as a result of demand growth.
As for the wire rod segment, there have been no changes in consolidated prices for December in Italy or Germany. Here, specifically, they have been reported at €575-590/mt delivered for drawing quality and €550-565/mt delivered for mesh grade wire rod. In central and eastern Europe, on the other hand, wire rod prices in December have increased by €5-10/mt, standing at €580-590/mt delivered for drawing quality and €565-580/mt delivered for mesh quality.
According to reports from a market source, the drawing quality wire rod segment is heading towards the new year under upward price pressure, with request increases estimated at an average of €20/mt based on several factors, including a "shortage of quality wire rod from non-EU countries, production accidents and delays in supplies by large European producers, shortages of higher-quality scrap, etc.". The scenario is different in the mesh quality wire rod segment, where the higher price levels at which previous orders had been acquired are now unrealistic due to seasonally low demand. The risk, therefore, is that the requests for increases hypothesized for January will not find fertile ground.
As far as the export market is concerned, no changes have been reported compared to the latest price levels reported by SteelOrbis, whereas import offers from Turkey have been reported at €505-510/mtt CFR for rebar - down by €5/mt week on week for January deliveries - and at €510-520/mt CFR for wire rod - also down by €10/mt week on week for January deliveries, with the euro-dollar exchange rate stable at 1.17.
