Long product demand is still limited in southern Europe and shows no clear signs of recovery. This situation has prevailed for several weeks now in the region. The market is generally uncertain and the price increases targeted by the mills are not yet fully accepted, specifically in Italy, due to the slowness of construction activity. In Greece, business is slow partly owing to the upcoming elections and the related evaluations of the outcome. While domestic demand for longs in Europe is not sufficient even for local mills, the import segment has been very silent lately.
In Italy, mills’ attempts to raise the price of rebar have continued, but the market is only partly reacting positively. "We have to wait until next week to understand more," said one Italian trader. The offer range is currently being reported at €450-475/mt ex-works base (€715-740/mt ex-works including regular extras), up €10-15/mt over the past week. However, according to sources, not all clients are yet buying at these prices. Drawing quality wire rod prices are also starting to increase, standing at €710-720/mt DAP northern Italy, compared to €680-690/mt seen last week.
In the coming month, due to the Easter, April 25 and May 1 holidays, which all fall close to weekends, a quiet and slow market is expected in Italy. A similar situation exists for Greece, which is preparing for legislative elections on May 21.
Export offers are observed, but the market overall is sluggish and customers are taking their time to evaluate the situation. Ex-Italy offers to eastern Europe (Poland, the Czech Republic, Slovakia, and Hungary) have been reported at €730-740/mt DDP for drawing quality wire rod and €720/mt DDP for mesh quality wire rod. "These are ambitious prices, but they are still in line with what our other competitors are doing," a source from an Italian steel mill commented.
Spain, according to one source, is reported to be offering drawing wire rod at €735/mt DDP, in line with Italian prices. According to another source, Spanish mills are also reported to be offering €680/mt FOB for rebar. Prices from Greece, on the other hand, were reported by one producer at €670-680/mt FOB for rebar and €690/mt FOB for wire rod.
Import offers are scarce as demand has still failed to improve. Egypt is offering at $690-700/mt FOB (€660-670/mt CFR) for wire rod, down $10/mt week on week.
Turkey has not yet fallen below $710-720/mt FOB (€670-680/mt CFR) for rebar and $720-730/mt FOB (€680-690/mt CFR) for wire rod, but down $10/mt on weekly basis for both products.