Activity in the southern European rebar and wire rod markets has been very quiet this week, with prices stable or falling amid unsatisfactory demand. Some sources, however, are beginning to talk about increases, particularly for local rebar in Italy.
The Italian rebar market has seen a freefall in prices to €290-305/mt ex-works base depending on volumes (€555-570/mt ex-works including regular extras), down by €25-30/mt from last week. Some producers, however, argue that these prices are too low and are trying to raise them with increases which have not yet been accepted. Indeed, we will have to wait until next week to see whether other producers will follow with increases and whether these will be accepted by the market. To balance the situation, some steel mills are deciding to stop production.
The local price of SAE1006 wire rod has been stable in Italy at around €590-600/mt delivered, in line with the other local prices in Europe at €600/mt delivered.
As for exports, according to some sources, there is no shortage of sales, but they occur at very low prices. The ex-Italy tradable range has been reported at about €580/mt delivered for rebar, and a source reported offers to Turkey at €540/mt FOB for SAE1006 wire rod.
Ex-Greece offers have remained stable from last week at €570/mt FOB for rebar and €580/mt FOB for wire rod. Moreover, the Greek market is still affected by the consequences of the floods in the Volos area.
In the import segment, ex-Turkey offers have been reported at $570-580/mt FOB for rebar (€560-580/mt CFR southern Europe) and $590/mt FOB for wire rod (€580-590/mt CFR), stable week on week. Other offers for wire rod were reported at $565-575/mt FOB from Egypt (€550-565/mt CFR) and $550-560/mt FOB from Algeria (€535-550/mt CFR). Algeria has also offered rebar at $540-560/mt FOB (€525-550/mt CFR). Moreover, Indonesia has offered at $520-525/mt FOB (€540-550/mt CFR).