Last week in the European rebar markets, prices generally maintained their levels of the previous weeks. Although weakness has continued on the demand side, increasing scrap prices have led rebar prices to post an overall climb in Europe in recent weeks. Meanwhile, news awaited with great interest by the Turkish mills was announced on May 1. The price announcement by the Egyptian mills for May, which marked an increase of EGP 150/mt ($27/mt) as compared to the April level, is of particular concern to the Turkish mills, as well as to the European mills who have been following the price increases which the Turkish mills have started to apply. While Turkish mills are expected to raise their rebar export offers above the level of $500/mt FOB as of this week, the acceptance of the new prices may cause a continuation of the increase in scrap purchase activity and in scrap prices. Also, this situation may affect the prices of the European mills, despite the demand contraction in Europe. The situation in question is expected to acquire greater clarity within the current week.
Last week, export offers given from southern Europe were mainly at the level of €370/mt FOB. Also, in some regions offers continued to be given at the levels heard in the previous weeks, i.e. at €380/mt FOB. Throughout southern Europe, demand has continued to constitute a problem, while mills have still been focusing their attention on Algeria and on the Mediterranean market for exports. However, demand is seen not to have reached the anticipated and desired levels in terms of exports.
Meanwhile, the price increases which started a couple of weeks ago in the eastern European market are expected to continue at gradual rate.
The current months are generally the most buoyant season for the markets. However, due to the influence of the global financial crisis, the iron and steel markets as a whole are now going through a difficult period which contrasts sharply with what would normally be expected for the time of the year . In this current period, production outputs have been cut, various offers are heard depending on tonnage and customer regardless of the list prices, and sometimes demand also accompanies the rises seen in price levels.