The European longs market has shown a bearish trend this week, particularly in Italy, where the local rebar price has fallen by further €10/mt week on week. Export markets in southern Europe also fell, while imports (particularly from Turkey and North Africa) have remained stable due to the absence of local players for their religious holidays.
In the Italian rebar market, the latest prices recorded are standing at €260/mt ex-works base and below (€525/mt ex-works including regular extras). This drop is due to not only a low demand, but also to the excess of material available on the market that leads producers to offer lower prices in order to “gain a slice of the market”, a source commented. Competition is strong, and although these prices are “unsustainable for producers”, as one local Italian trader stated, the market conditions do not allow further increases. Trade has consequently slowed down a lot, and end consumers keep postponing their purchases waiting for the right moment to buy.
The situation was almost the same in Germany, where, unlike in Italy, rebar had been available in smaller quantities due to the absence of some producers from the market which lasted for several months. As a result, the market seems to have found its balance at the moment. As per wire rod, SteelOrbis reported no changes in the local Italian market, and prices remain stable week on week at €625-640/mt delivered for drawing quality wire rod and at €610-625/mt delivered for mesh quality wire rod.
The sluggish market mood was also influenced by the increase in tariffs on steel imports to the United States from the existing rate of 25 percent to 50 percent on June 4. According to the European Steel Association (EUROFER), this move will lead to a massive diversion of the volumes of finished steels traditionally destined to the US market into European markets, worsening their overcapacity and presumably leading to further declines in prices in the long run.
In the exports market, there were no records of changes in ex-Greece rebar and wire rod prices, whereas rebar prices from Spain to UK ports stand at around €550/mt FOB, declining by €10/mt compared to last week and continuing their downwards trend.
Finally, the Muslim religious holiday of Eid al-Adha (Feast of Sacrifice) which will last from June 6 to 9, 2025, is keeping players from Turkey and North Africa out of the market this week. Therefore, import rebar prices from Turkey remained stable week-on-week at €500-510/mt CFR and also as low as €490/mt CFR. Wire rod prices of the same origin, on the other hand, have been stable at around €510-520/mt CFR. Import prices for rebar and wire rod from Algeria have been reported at €505-510/mt CFR and €500-510/mt CFR, respectively. All prices are based on the exchange rate 1 $ = 0.86 € (European Central Bank, June 5), and have remained stable on dollar basis but have marked declines on euro basis due to exchange rate fluctuations.