Demand in the European longs market continues to be stagnant this week, with producers beginning to announce production halts for October and November.
In Italy’s domestic rebar segment, the reference price remains stable at €280-290/mt ex-works base (€545-555/mt ex-works including regular extras). In the wire rod segment, offers have been reported at €580-590/mt delivered for mesh quality and €620-630/mt delivered for drawing quality, both down by about €10/mt month on month. Declarations of price increases by ArcelorMittal in Europe have, in some cases, provided support to avoid further price reductions. October volumes were sold at “acceptable, though not optimal” levels, according to an Italian source. “Italian steel mills haven’t had a positive year, but these market shifts offer a glimmer of hope,” a source commented, noting, however, the current rigidity among producers.
New ex-Italy wire rod offers have been reported: mesh quality has been offered at approximately €590-600/mt DAP central Europe and drawing quality at €630-640/mt DAP central Europe, both down by about €20/mt compared to offers seen in September. Meanwhile, ex-Italy rebar offers have been reported at stable levels around €560/mt FOB, while ex-Spain rebar offers have been reported at around €570/mt FOB, up by €10/mt from last week’s offers.
Ex-Turkey wire rod offers are stable at €600-610/mt CFR southern Europe, while ex-Turkey rebar offers have shown a slight decline in dollar terms while remaining stable in euro terms due to exchange rate fluctuations, hovering at around €590-600/mt CFR.