The European longs market has remained under pressure this week, with trading activity still limited amid persistently weak demand. The seasonal slowdown caused by the summer holiday period, together with expectations among downstream users of further price decreases, has continued to keep most buyers on the sidelines.
In Italy, rebar prices have been reported slightly lower again, at €400-420/mt ex-works base (€660-680/mt ex-works including regular extras), down by €20/mt on the lower end of the range compared to last week. However, the decreases have failed to revive demand either in the local market or in export markets, while mills’ inventory levels remain high. “Oversupply is still there,” a source at an Italian mill said. “Production slowdowns and stoppages should help us control it.”
In the wire rod segment, prices currently stand at €685-695/mt delivered for drawing quality and at €680-690/mt delivered for mesh quality, slightly down compared to the previous ranges. In this segment, the downward trend is being limited mainly by tighter availability, which is helping to contain price decreases. However, mills’ customers are still expecting some reductions.
Meanwhile, safeguard quotas remain a key issue for traders and steel users, particularly those who are active in the import segment. Up to July 14, volumes were still waiting for customs clearance due to delays accumulated following the late publication of the quotas. “There are companies that have been halted for weeks, waiting to be able to clear material through customs,” a source said. “This is unacceptable. Luckily, we had high inventory levels and we managed to cover our orders, but overall it has not been easy. We hope something will change by next week.”
In export markets, an offer of wire rod from Italy to Hungary has been reported at €670/mt CPT, while a deal for 2,000 mt of rebar from Greece has been reported at around €605/mt FOB.
In the Spanish domestic market, wire rod prices have been reported at €700-720/mt delivered, remaining mostly stable compared to previous levels. “Lowering prices would make no sense; at these levels there are few deals, but the issue is structural,” a source said. Meanwhile, wire rod prices in Poland stand at around €680/mt CPT.
In the import market, prices from Turkey have remained mostly unchanged compared to last week, with offers at €535-545/mt CFR for rebar, slightly down by €5/mt on the lower end of the range, and at €545-555/mt CFR for wire rod, stable compared to last week. Meanwhile, the import quotas allocated to Turkey have been fully exhausted for both rebar and wire rod, while for Egypt the remaining quota stands at 24,778 mt for rebar and 5,215 mt for wire rod.
€1 = $1.1467
