Demand in the southern European rebar and wire rod markets remains feeble, but producers have continued to seek increases, partly because of rising scrap and production costs.
In Italy, producers continue to seek prices in the range of €330-350/mt ex-works base for rebar (€595-615/mt ex-works including regular extras), while buyers are proposing €290-300/mt ex-works base (€555-565/mt ex-works including regular extras), with some negotiations concluded at around €310/mt ex-works base (€575/mt ex-works including regular extras), virtually stable compared to two weeks ago.
Low demand is still a concern, also due to the complicated situation regarding storms and floods in some parts of Italy.
In Spain, local mills have been offering wire rod at €600/mt delivered.
On the export side, ex-Italy rebar offers have been reported at €580-590/mt FOB, while increases have been reported in ex-Greece offers: rebar has been reported at €600/mt FOB and wire rod at €610/mt FOB, while two weeks ago they were both at €590/mt FOB. Ex-Spain offers have been reported at €570-580/mt FOB, up again after declines to €560/mt FOB two weeks ago.
Traders and end-users seem to have not yet accepted the new price levels proposed by producers and have become accustomed to working with low stocks, leading them to have to book more quantities at the new (increased) prices. This is what has emerged from the southern European market, which will continue to operate until the first week of December and then, according to some sources, go into “hibernation”. Demand is not showing great signs of an upswing, so steel mills will be forced to slow the pace of production to offset the crisis. "In addition, as long as production costs remain at the current level and the various governments do not subsidize part of the costs, the new year will start at higher prices than at present," added a source from a Greek steel mill.
In the import segment, there is still interest in certain origins, in particular in Turkey since its quota has not been closed.
Increases from Turkey have been reported, again due to the increase in scrap prices. Ex-Turkey official rebar offers have been stated at €565-570/mt CFR southern Europe for November-early December shipments, with only a few mills offering at slightly higher levels, up from €550-560/mt CFR a week ago. Before the increase, there had been a deal for 30,000 mt of wire rod from Turkey at $545/mt FOB to Germany/Netherlands, which means around €540-545/mt CFR.
In the wire rod segment, most Turkish mills are offering at €575-580/mt CFR, up from €560-570/mt CFR in the previous week.
Ex-Egypt offers have been reported in the range of €550-560/mt CFR, stable compared to two weeks ago. There has been a $555/mt FOB deal for 5,000 mt from Egypt to Europe, which means around €550-555/mt CFR.