Demand has remained strong in the Polish rebar market over the past week and prices have remained stable at PLN 4,000-4,150/mt (€888-922/mt) ex-works. However, new price increases are on the way, sources believe. Most mills have sold out their July production and are expected to announce new higher price levels for August soon. Besides strong end-user demand, the production volumes of manufacturers are not sufficient to meet consumers’ needs. Moreover, some allocation cuts are possible in the near term due to maintenance works scheduled for the holiday period.
"Demand is strong and availability of material is limited. Construction activity is at high levels and there are a lot of new projects at the moment. Producers are going to implement their annual maintenance works in August, like every year, and they will accept fewer orders. In this situation, buyers are eager to buy despite the record high price levels and it is certain that we will see higher prices for the limited August production, and some even say prices may see PLN 4,500/mt (€1,000/mt) soon," one trader told SteelOrbis.
Demand for import materials is also good in Poland, but the number of offers is still limited. Deals have been done from Italy at €860-870/mt CPT and from Moldova at €850-860/mt CPT within the past two weeks. German offers are still standing at €880-890/mt CPT, also for limited allocation.
Prices exclude 23 percent VAT.
PLN 1 = €0.2221