The first price increases have materialized in the European longs market this week, mainly driven by the fact that supply needs are forcing end consumers to accept the requested prices. Nevertheless, both orders’ income and production are extremely slow, and market players keep waiting for a clearer development of the Middle East situation.
As for the rebar market in Italy, the new order level is standing at last week's objective, i.e. around €350/mt ex-works base (€610/mt ex-works including regular extras). However, a source has reported that after this price’s confirmation, producers have again suspended rebar quotations and are considering even higher increases. "I’m expecting significant increases in the market," an Italian trader said. "Whoever wants to buy will have to accept them."
"[Producers] are trying to increase wire rod prices as well, but the current situation is not helping, they are struggling a lot and demand is low," another trader said. On the producers’ side, in fact, one of the main Italian mills continues to refrain from proposing new offers both on domestic and export markets, causing prices to remain unchanged again.
Speaking of export markets, rebar prices offered by Spain to southern European ports stands at around €610/mt FOB. On the import markets, on the other hand, new rebar and wire rod offers from Egypt have been reported at €535/mt CFR and €540/mt CFR, respectively.
1 EUR = 1.15 USD (European Central Bank, March 19)
