This week has been a quiet one for the European longs market. The summer lull continues to weigh on prices, which have remained stable amid the prevailing absence of market players.
In the local Italian rebar market, prices have remained firm at around €295-300/mt ex-works base (€560-565/mt ex-works including regular extras), having gained about €60/mt from the beginning of July. According to one local trader, “The market will resist.” On the contrary, a source from an Italian mill commented, “This level won’t work in September, at least in Italy.” Upward price pressure continues to emerge, but in other European countries - e.g., Switzerland - a downward price correction seems the most likely scenario.
The general feeling among market players, however, is one of great uncertainty, due to the next revision of safeguard measures (quotas), the CBAM implementation, and other seasonal factors, as well as the ongoing international conflicts.
Shifting to wire rod markets, no changes have been reported. In Italy, local prices have remained stable at €600-615/mt delivered for drawing quality wire rod and at €585-600/mt delivered for mesh quality wire rod.
Stable prices have emerged also in export and import markets. For the latter, Turkish rebar and wire rod prices continue to be at €490-500/mt CFR and €500-505/mt CFR, respectively, whereas rebar and wire rod prices from Egypt have been reported at €495-500/mt CFR and €505-510/mt CFR, respectively. These prices are based on the euro-dollar exchange rate of 1.16 (European Central Bank, August 7).