Many European long steel companies have reduced their production rates as a consequence of rising expenses and insufficient demand, some of them have even decided to temporarily suspend output. The major traders in the local Romanian market slowed their sales and raised the prices in an attempt to take advantage of the situation and being not willing to sell out their limited stocked volumes at low levels. The smaller traders are also trying to keep up with the price uptrend, as well fearing a supply scarcity in the coming months.
“Prices began to rise abruptly because production in Europe slowed and even stopped, which resulted in a reduction in [ex-EU] import offers to Romania. Larger traders … sought to benefit from the panic atmosphere and raised the price, but there's still no increase in demand,” a trader commented to SteelOrbis.
The domestic retail rebar prices in Romania are presently between €735-750/mt ex-warehouse, up from €715-730/mt ex-warehouse the previous week. Based on the most current sources, Greece has raised its offers to €835-840/mt delivered, which was €750-794/mt delivered last week. Similarly, Bulgaria has also lifted its offers by €50/mt over the week to €800/mt delivered.
Turkey’s prices, which are at around €695-720/mt CFR according to $1 = €1 exchange rate and around €25-30/mt freight, are the lowest ones in the market. As a result, taking also into account that Turkey is able to sell for close shipments, some of the buyers might restock. However, the quota volume for Q4 is limited and customers are to evaluate their actions carefully.
Furthermore, wire rod retail prices in Romania have grown by €10-40/mt to €725-770/mt ex-warehouse. Sources claim that Italy offered at €800/mt FCA and Greece offered at €855/mt delivered, which was €760/mt delivered as reported last week.