The European longs markets are continuing to show some weakness. After having recorded some price increases, Germany and Poland now seem to have halted their uptrend, aiming for lower levels due to weak demand. At the same time, though, the wait for new safeguards helps to maintain strong pressure on prices.
As far regards Germany, it seems that a major producer is diverting a large part of its volumes to the Polish market, where market players continue to maintain a cautious attitude and a low willingness to buy, both for rebar and wire rod. “Polish customers have bought a lot at high prices, so I believe they will remain quiet for a while,” a source said.
In Spain, the price situation in the domestic market appears stable, and offers of rebar and wire rod for export are reported at €670/mt FOB and €685-690/mt FOB, respectively.
For general reference, rebar prices in the local European markets have been reported at €700-710/mt ex-works in Italy, at around €680/mt delivered in Germany and at around €650-680/mt CPT in Poland.
Finally, in the import markets, offers to Europe from Turkey and Egypt are still heard, but buyers in EU countries are waiting for the new quotas and therefore they do not dare to place orders. In any case, Turkey is offering rebar at €550-565/mt CFR and wire rod at €560-565/mt CFR, down by €5/mt CFR compared to the previous week. On the other hand, offers from Egypt have been reported at €550-560/mt CFR for rebar and €565-570/mt CFR for wire rod, stable or slightly higher compared to the previous week.
It is also necessary to take into account the gradual strengthening of the dollar against the euro in these variations, as the exchange rate has gone from 1.16 to 1.15 as of June 18.
