A climate of uncertainty persists in the longs segment in southern Europe, dominated by poor export sales and no actual increases being accepted by the market. Moreover, in the rebar segment, instead of the expected rise, local prices have actually weakened compared to the latest deal levels.
In Italy, in the local rebar market there is talk of a still “hypothetical” price increase: producers seem to have confirmed orders for most of March at the lowest prices previously present: €400-420/mt ex-works base (€665-685/mt ex-works including regular extras).
Currently, the tradable price range for Italian rebar is standing at €390-410/mt ex-works base (€655-675/mt ex-works including regular extras), but sources have said that €430/mt ex-works base (€695/mt ex-works including regular extras) will probably be officially requested from next week, but there is no feedback yet.
Other segments, including scrap and billets, are increasing, and sources agree that a realistic upturn is also being expected in the local longs market, which will be accepted in a week or two, according to sources.
"I think this increase will have to be accepted, given the trends in scrap and billets," said an Italian trader, adding, "It is true that at present there have been no sales at increased prices yet, but, in my opinion, in a week or ten days they will get the desired upsurges."
"This time, an actual increase is conceivable, maybe not by €50/mt, but by €20-30/mt," commented another Italian trader.
SAE1006 wire rod, on the other hand, remains stable at €680-690/mt DAP Northern Italy.
Export offers from Italy seem to be stable at €670-680/mt FOB for rebar, while one Greek producer said that for April shipment they will offer at around €680/mt FOB for rebar and €700/mt FOB for wire rod. "If prices are not in line with market conditions, we will be forced to stop production for a while," the Greek producer added.
Even in the import segment this week, offers have not been plentiful. Egypt is offering rebar at $700-710/mt FOB and wire rod at around $720/mt FOB, compared to last week's $700-720/mt FOB and $700-730/mt FOB respectively. Current offers translate to about €690-700/mt CFR for rebar and around €710/mt CFR for wire rod.
From Turkey, offers have stood at $750-760/mt FOB (around €725-740/mt CFR) for March shipment, registering a $10/mt drop in the upper range from last week. In the wire rod segment, some mills are offering $760-770/mt FOB (around €735-750/mt CFR) for March shipments, down from the previous range of $770-790/mt FOB.
