A wait-and-see mood prevails in the southern European longs market. While in the local segments offers are stable, foreign markets are showing little demand; in addition, import offers from North Africa, Turkey and Asia have been on the rise, but the market is taking time to accept them.
In Italy, producers are continuing their attempts to raise prices, positioning themselves at €340-350/mt ex-works base (€605-615/mt ex-works including regular extras), but orders and realistic tradable prices are still at around €310-320/mt ex-works base (€575-595/mt ex-works including regular extras), stable week on week. Some producers are also predicting major stops during the Christmas period.
Spanish wire rod has also been reported stable in the local market at €600/mt delivered.
Some sources have indicated that they expect prices to rise in the longs segment, particularly due to rising scrap and growing costs, but many are still analyzing the situation.
In the export segment, demand is scarce. "The German market and the markets gravitating around Germany are at a standstill. Some customers anticipate year-end closures. Maybe they are interested in projects for the first quarter of 2024, but there are no requests for December," commented an Italian source.
Other sources said they are observing various markets, but, considering current prices in the Mediterranean area, it is difficult for some to be competitive. The ex-Italy rebar price range has been reported at €580-590/mt FOB, stable compared to last week, but with few requests.
Thus, import offers remain attractive, though increasing. Longs prices in the Mediterranean region have been on the rise this week, mainly due to increases in Turkey and limited availability of offers from North Africa. Most suppliers have raised prices, but the market is still taking time to accept them.
Ex-Egypt offers have been reported at around €555-565/mt CFR southern Europe, considering the lower end for rebar and the upper end for wire rod, up from €550-560/mt CFR last week. Turkey is offering at €555-565/mt CFR for rebar, for late November-December shipment, up by €5/mt on the upper end. Ex-Turkey wire rod offers have been reported at €570-580/mt CFR, for late November-December shipment, up from €565-570/mt CFR last week.
Ex-Asia offers have been reported at around €550/mt CFR for wire rod, with one source in particular reporting offers from Vietnam at €555-560/mt CFR, for January shipment.