Local Bulgarian longs prices rise sharply amid possible CBAM impact

The relative price stability for longs seen in Bulgaria in November has been followed by a sharp uptrend in December. The main reason is the CBAM-related uncertainty, which has encouraged local suppliers to increase their offer prices. In addition, long steel import offers to Bulgaria have also increased in December.

For instance, local Bulgarian rebar prices were around BGN 1,200-1,210/mt CPT (€613-619/mt) CPT last week and even hit BGN 1,220-1,240/mt CPT this week. In addition, the increase in import scrap prices in Turkey also supported this upward trend in Bulgaria. "Bulgaria seems to receive material from Egypt and Turkey and occasionally from Indonesia in the import segment. A decent volume of material was ordered at $530/mt FOB from Turkey in October for January delivery, while fresh ex-Egypt rebar prices are at around $540-545/mt FOB," one source told SteelOrbis. Stock levels in the long steel retail market in Bulgaria are moderate, while most buyers are so far maintaining a wait-and-see stance.

Currently, in the import segment, Turkish rebar has been offered to Bulgaria officially at $590-600/mt CFR for January shipment, up $25-30/mt over the past month amid the higher import scrap prices in Turkey, but also due to the high-priced domestic rebar sales seen in the past several weeks. New ex-Turkey equal angle export offers are standing at $625-645/mt CFR Bulgaria, versus $635-650/mt CFR last month. The freight rate from Turkey to Bulgaria is estimated at around $25/mt, versus $15-20/mt earlier. 

On the European side, Italian beam offers to Bulgaria are heard at around €770-870/mt CPT, up by €10/mt over the past month, while new ex-Spain beam prices are available at €715/mt CIF Bulgaria due to CBAM regulations, SteelOrbis has heard.

Local prices for long products in Bulgaria, BGN/mt (€/mt) CPT

€1 = BGN 1.956

$1 = €0.85