Sentiment is still uncertain in the longs market in southern Europe, which is taking its time to fully recover. Scrap prices have risen, but demand is not fully responding to the increases demanded by longs producers.
In Italy, the mills have tried to raise prices, and, according to some sources, there have been positive responses from the market to €440-460/mt ex-works base (€705-725/mt ex-works including regular extras). However, according to other sources, there are still some sales concluded at the previous level which was €40/mt lower, and demand from buyers is still seen at €410/mt ex-works base (€675/mt ex-works including regular extras). As a result, the current range for local rebar in Italy is at €410-460/mt ex-works base (€675-725/mt ex-works including regular extras). Local Italian wire rod prices are still stable at 680-690 €/mt DAP northern Italy.
As for export offers, Italian producers would like to target a €10/mt or $20/mt increase, mainly due to the rise in scrap prices and concern over the end-of-month expiration of the energy tax credit. Customers, however, are still waiting and unconvinced. According to an Italian source, workable ex-Italy prices for longs currently remain at €680/mt FOB.
"Some European producers are trying increases for mesh quality wire rod," said a source from an Italian steel mill. "From Spain, they are proposing €700/mt delivered, while from Greece they are targeting €690-700/mt delivered."
Export offers from Greece remain stable week on week for rebar and wire rod, at €700/mt FOB and €720/mt FOB, respectively, in a market still struggling in terms of demand and high inventories. "I believe that starting in April steel mills will be forced to close, to balance supply with demand," commented a Greek producer.
There have been stable import offers from Egypt: $690-700/mt FOB (€670-680/mt CFR) for rebar and $700-710/mt FOB (€680-690/mt CFR) for wire rod. Ex-Turkey offers have decreased by about $10-30/mt week on week: rebar is now at $730/mt FOB (€703/mt CFR) and wire rod at $740/mt FOB (€712/mt CFR). In addition, there have been wire rod offers from Malaysia at $680/mt CFR to the EU, down $10-20/mt over the past week.