Some upward changes have been observed in the European longs market this week, especially in the German market.
In Italy, workable rebar prices have increased reaching about €310-320/mt ex-works base (€570-580/mt ex-works including regular extras), up by around €20/mt compared to last week’s workable levels. Italian mills’ desired prices have not changed so far, being now equal to the workable prices, although some producers have declared that they intend to ask for further increases in February.
"Buyers remain cautious. There is a lack of demand and the weather is not helping," a local source commented. "The Italian market needs to be assessed day by day, also because of the weather," a source at a major Italian mill said.
In the wire rod segment in Italy, no further changes have been reported after last week's increases. As a result, the reference range for drawing quality remains at around €600-620/mt delivered.
In Germany, rebar producers have asked for increases of about €20/mt compared to January, shifting local prices to €620/mt delivered. "Traders may offer up to €10-20/mt less, but not for long," a source commented. "Demand is good and producers are holding on," he concluded.
As far as Spain is concerned, domestic longs prices are standing stand at about €30/mt higher than in Italy, and with an export level of €570-580/mt FOB for rebar - down by about €10/mt on the lower end of the range - producers and traders prefer to direct sales to the domestic market rather than to the export market, benefiting from better demand and more favorable prices.
On the other hand, the decline continues in the import market, where rebar prices from Turkey have been reported at €490-500/mt CFR, down by €10/mt week on week at the lower end of the range, and wire rod prices have been reported at €500-510/mt CFR, also down by €10/mt in the lower end of the range week on week. Rebar prices from Egypt have been reported at around €490/mt CFR and wire rod prices at €495-505/mt CFR. Finally, Algerian wire rod prices have been reported at around €490/mt CFR.
€1 = $1.18 (European Central Bank, February 5)
