Although the long steel market in southern Europe still faces challenges, there are emerging signs of optimism. In Italy, local rebar price hikes are eliciting initial responses from buyers, who are starting to make inquiries. Export market offers remain relatively steady and, even though Turkey is interested in the Balkan countries that are not subject to quotas, the demand there should be enough for everyone.
"We'll need to wait at least a week to gain a clearer understanding of the European market, given the ongoing holidays and closures,” a source commented.
Producer offers for local rebar in Italy have been reported at €320-340/mt ex-works base (€585-605/mt ex-works including regular extras), the same price as last week, and customers are starting to respond. Further declines are excluded as scrap shows no signs of decreasing.
Local wire rod offers in Italy have been reported stable at around €640-660/mt delivered in northern Italy for drawn quality and €630-640/mt delivered in northern Italy for mesh quality. Mesh quality wire rod in Spain, moreover, has also been reported stable at around €610/mt DAP.
As regards the export segment, ex-Italy rebar offers have been reported at €570-580/mt ex-producer and wire rod at around €670-690/mt delivered in Europe. Ex-Greece rebar and wire rod export offers are also stable, although, according to some sources, the focus is on the higher end of the €590-610/mt FOB range.
Regarding the import segment, Turkey is offering rebar at €575-585/mt CFR southern Europe and wire rod at €585-600/mt CFR. Egypt, according to sources, is offering at similar levels to Turkey. Ex-Vietnam wire rod offers have been reported at €560-565/mt CFR, while ex-Malaysia and ex-Indonesia offers have been reported at €550-555/mt CFR.