The rising cost of energy and the fact that many European long steel companies have either stopped or cut production, while mills’ prices have increased significantly this week across the EU. However, many have doubts as to whether demand will increase enough to support these price rises. Particularly, in Romania the limited domestic activity has even led to a decline in retail wire rod prices over the past week, while rebar offers in the country have rebounded slightly.
“The situation is difficult because there is literally no demand and the price of everything is rising, so our main goal now is to sell as much as possible in order to avoid a loss. Imports are gradually decreasing due to low demand and excessive stocks. Especially from Turkey, it is no longer profitable to buy,” a source told SteelOrbis.
Retail rebar prices in Romania are currently in the range of €705-720/mt ex-warehouse, up from €700-720/mt ex-warehouse last week. As observed over the past month, rebar traders are very hesitant to import and are buying less if necessary. According to sources, Greece has offered rebar at €764/mt delivered.
Turkish pricing his week is not as clear given the latest announcement regarding local energy and gas tariff increases. The mills are expected to raise their offers, which will make Turkish rebar completely unattractive in the Romanian market.
The retail prices for wire rod in Romania have been slightly lower this week, at €715-730/mt ex-warehouse, a €5/mt decrease from last Friday. There are no import offers reported this week due to full inventories and the lack of interest from many buyers in purchasing wire rod.