Despite persistently low demand, Romania's sole rebar producer, which had been absent for approximately a month, has decided to return to the market, resulting in a rising price trend. The price of the producer, which is higher than the current feasible levels, has led long steel traders in Romania to raise prices in the spot market. However, given the dire state of the domestic market, most market participants do not think this increase will last long.
“The domestic market is tight and depressed due to persistently low trade, putting pressure on pricing. Besides, with the return of the local producer (Beltrame), prices have been pushed higher. Earlier in the week, they announced €640/mt ex-works as their target price for January rolling, but, after receiving minimum orders, they reduced the price to €620/mt ex-work given the circumstances. It appears that they may have to lower that price as well,” a large trader commented to SteelOrbis.
The Romanian producer decided to offer at €620/mt ex-work, compared to previous offers at roughly €600-605/mt ex-work. Similarly, the majority of Romanian rebar traders have chosen to raise their offers to €595-610/mt ex-warehouse, from €590-605/mt ex-warehouse last week.
Although trade in the wire rod market has remained slow, most traders have increased their offers in response to the market's upward trend. According to sources, this week's offers have increased by €15-20/mt to €600-610/mt ex warehouse.
Meanwhile, the import market is still quiet and no new deals have been heard, with most offers remaining at the same prices as last week. Accordingly, offers for rebar from Moldova and Ukraine have been fixed at €610-620/mt CPT and €655/mt CPT, respectively. Similarly, Egypt has maintained its rebar and wire rod offers at €575/mt CFR and €605/mt CFR, respectively. Greece also kept its rebar and wire rod prices stable, at €670-675/mt CFR and €660-665/mt CFR, respectively. On the other hand, Turkey's average rebar price has risen by €5-10/mt to €590-600/mt CFR to Romania, with a €1 = $1.09 exchange rate and around €25-30/mt freight.
