According to the latest reports, the longs market in southern Europe continues to show some stability, with producers attempting to introduce price increases, but the results remain uncertain.
In Italy, the local rebar market has seen the near-total disappearance of offers at €320/mt ex-works base (€585/mt ex-works including regular extras), with prices stabilizing at around €310/mt ex-works base (€575/mt ex-works including regular extras). Workers confirm that there is still talk of price hikes to secure orders, even at lower levels than the current ones. As for the local wire rod market, according to some sources, there have been sales in Italy up to €630-640/mt delivered for drawing quality and about €600/mt delivered for mesh quality, respectively higher and stable compared to last month.
On the export front, Italian wire rod is being exported to eastern Europe at €640-650/mt delivered for drawing quality and €620/mt delivered for mesh quality. To Germany, the prices are around €630-640/mt and €610/mt delivered, respectively. “Steel mills have increased prices from February to March, hoping that the market can absorb the increases,” commented an Italian source. As for Spain, the export price for rebar, according to some sources, has decreased by €10-20/mt week on week to about €590/mt FOB.
On the import side, ex-Turkey offers have remained stable on US dollar basis but decreased on euro basis due to exchange rate fluctuations (currently at $1 = €0.92), with rebar at €550/mt CFR southern Europe and wire rod at €550-560/mt CFR. From Egypt, there have been offers for wire rod at €555-560/mt CFR and rebar at €550-560/mt CFR. Ex-Algeria offers have been reported from one producer at €550-560/mt CFR for both rebar and wire rod, while for another producer they are at €530-535/mt CFR for wire rod and €540-550/mt CFR for rebar. Finally, offers for wire rod from Indonesia have been reported at €490/mt CFR. All prices are calculated based on the exchange rate of $1 = €0.92 (March 6).