No significant movement has been reported in the European longs market this week. Rebar and wire rod local prices in Italy have remained unchanged due to the Easter, Liberation Day and Labor Day holidays and the situation is more or less the same in other European markets.
In Italy, local rebar prices are still at around €340/mt ex-works base (€605/mt ex-works including regular extras), unchanged week on week. “There will be no major changes until week 19”, an Italian source commented. As far as wire rod is concerned, local prices for drawing quality remained unchanged week on week at €635-650/mt delivered, while mesh grade quality still stands at €605-620/mt delivered, also unchanged week on week.
Long steel product demand was not brilliant in the Italian and European markets in March and April, and so several major mills decided to reduce their long steel production capacities. In March, Italian long steel production amounted to 1.2 million mt. At the same time, however, it is expected that producers will stock up as the summer season approaches, in view of the stoppages in July and August. Since this will likely cause a reduction in the product quantities available in the market, one could point to a possible price increase.
As for rebar, on the other hand, the drop in energy and scrap prices would suggest a possible decline. In spite of this, the market needs to consider many variable factors, which make forecasts very difficult.
At the time of publication, there were no changes reported in rebar export prices from Greece or from Spain to the United Kingdom, which last week stood at €595-600/mt FOB and €580-585/mt FOB, respectively.
Import offers of rebar and wire rod from Turkey have decreased to €500-510/mt CFR and €510-520/mt CFR, respectively, down by €15-20/mt compared to the previous week, following a sharp drop in Turkey’s import scrap market. Price changes are calculated based on the European Central Bank’s exchange rate €1 = $0.88 (April 23).