Downward pressure on the European long steel market has increased amid strengthening of the euro against the US dollar, price softening for scrap and declines in ex-Turkey offers, while European long steel export offers have continued to move down.
This week rebar export offers from southern Europe are standing at €475-485/mt ($613-626/mt) FOB, while wire rod offers from the region are at €495-505/mt ($639-651/mt) FOB. Meanwhile European steel mills are facing difficulties in competing with Turkish export offers, which are at $580/mt FOB for rebar and at $595/mt FOB for wire rod. In addition, strengthening of the euro against the US dollar has affected demand for European rebar and wire rod in the Middle East and North Africa region (MENA) negatively. Lately, Turkish origin long steel products have started playing an import role in Algerian market, the major export market of southern European mills.
Long steel importers from the MENA region have been keeping a close eye on scrap market and adopting a wait-and-see stance.
€1 = $1.29