In the rebar and wire rod segment of southern Europe, demand recovery remains elusive. Additionally, scrap prices have seen increases, presenting challenges for longs suppliers in the region.
In the local rebar market in Italy, producers are delivering orders in the €310-340/mt ex-works base range (€575-605/mt ex-works including regular extras), but some are starting to talk about offers at €400/mt ex-works base (€625/mt ex-works including regular extras). Although no orders have been confirmed at this higher level, there are indications that producers are considering higher prices in January, aiming to solidify these positions in the last week before closures. Presently, the prevailing tradable price remains within the range of €340-350/mt ex-works (€605-615/mt ex-works including regular extras).
Demand remains weak in the export segment as well. Ex-Italy rebar offers have been reported at €610/mt FOB (+€20/mt from last week), and ex-Greece offers at around €630/mt FOB for rebar and €650/mt FOB for wire rod, stable week-on-week. Ex-Spain rebar offers are on the rise, reported at around €630/mt FOB (+€30/mt week-on-week).
In northern Europe, moreover, ex-Poland rebar offers have been reported in Lithuania at €640-650/mt DAP Kaunas, while Uzbekistan offered €630/mt DAP Lithuania.
Import prices are witnessing an upward trajectory. Turkey increased price at the end of the previous week, with ex-Turkey rebar offers standing at approximately €600/mt CFR southern Europe for January-February shipment, and ex-Turkey wire rod offers at €610/mt CFR for January-February shipment. Ex-Egypt rebar and wire rod offers have slightly increased to €580-595/mt CFR, aligning with rumors of offers at €600/mt CFR. From the Asian continent, ex-Malaysia wire rod offers have been reported at around €560-565/mt CFR, and ex-Vietnam and ex-Indonesia offers at €565-570/mt CFR.