Domestic rebar prices have remained stable in Poland over the past two weeks since pressure from buyers has limited producers’ ability to raise prices. The key reason for customers being reluctant to buy is the downturn in scrap prices and the rather high inventories in the spot market.
As a result, domestic rebar prices have remained at PLN 2,900-2,950/mt (€636-648/mt) ex-works for May production. There have been strong expectations for demand to improve after the Easter holidays, but this has not happened just yet. Still, producers are aiming to increase their prices to PLN 3000/mt (€658/mt), thinking demand will improve and spot stocks will decline. "Spot stocks affect the market worse than price issues now, and we think after stocks ease we will definitely see better prices. There is no problem in terms of construction projects and demand is really good in Europe," a trader told SteelOrbis.
On the import side, prices have risen slightly, partly because the second quarter quota for Russia has been filled recently. Prices from Moldova have increased by €10/mt to €610-625/mt CPT, with a remaining quota of 14,000 mt. There is still an allocation of 97,000 mt of rebar from third countries for the second quarter. According to the official statistics, the Polish rebar market has already consumed over 50 percent of its second quarter import allocations. In this situation, import offers might be limited for now until suppliers start selling for the third quarter.
Prices exclude 23 percent VAT.
PLN 1 = €0.2195