While the demand for long products in Romania has been somewhat more active than in previous weeks due to anticipated scrap movements in the market, the increase in trade has still not been sufficient to prevent price reductions. Moreover, Romanian traders have decided to provide further discounts in order to speed up their sales. Market participants claim that, due to inflation and the high cost of transportation, the profit margins on the traders’ side are very tight.
“The price includes the transport which is quite high. We are seeing a little more movement in the market, and the number of orders has started to rise. But it’s not enough to cover our costs, so I can say that we are currently operating at a loss,” a trader told SteelOrbis.
Over the past week, local Romanian rebar spot prices have decreased by €10/mt to €620-640/mt ex-warehouse. In contrast, the sole domestic rebar supplier has decided to keep prices stable at €630/mt ex-works, while as regards exports the offers to Bulgaria have been reported at €610/mt CPT.
In the wire rod segment, the downward trend has also persisted as the market mood remains depressed. Traders' prices are presently at around €610-640/mt ex-warehouse, down from €640-650/mt ex-warehouse seen last week.
Meanwhile, amid unfavorable local conditions and expensive import offers, Romanian traders are still unwilling to restock with foreign origins. Accordingly, this week Moldova and Bulgaria have offered rebar at €620/mt and €630/mt, respectively, both on CPT basis. At the same time, Greece has cut offers by €25-30/mt and €15-20/mt for rebar and wire rod over the past week to €630-640/mt CFR and €650-660/mt CFR, respectively. The offers have remained high and not so competitive.