The rebar and wire rod market in southern Europe has once again indicated stable offers this week, amid a continuous struggle between producers seeking price increases and buyers not yet fully willing to accept them. Sales, however, are ongoing, and suppliers seem fairly optimistic.
In Italy, rebar offers have been reported at a minimum of €350/mt ex-works base (€615/mt ex-works including regular extras) as the producers' target, but mills are still completing orders at the old prices. The achievable level, for now, remains lower, at around €320-330/mt ex-works (€585-595/mt ex-base including regular extras). "We are trying to increase prices," stated an Italian producer, adding, "It is true that the slowdown in scrap has somewhat cooled the expectations of a price increase. But we aim for +€15/+€20/mt in June compared to May."
Italian wire rod prices, on the other hand, have been reported by sources at €645-655/mt delivered for drawing quality and €625-635/mt delivered for mesh quality. In Germany, drawing quality wire rod is now at €650-660/mt delivered, while mesh quality is at €615-625/mt delivered. Prices are higher in central Europe: €670-680/mt delivered for drawing quality wire rod and €635-645/mt delivered for mesh quality.
As for export offers, stable ex-Italy rebar offers have been reported at €590/mt FOB: "We are actually starting to ask for €10/mt more, but it will be seen in June whether this is accepted or not," commented a producer. Ex-Greece offers have been reported stable in the range of €585-610/mt FOB for rebar and wire rod, but, according to a source (not confirmed at the time of publication), there have also been lower offers at €570-580/mt FOB for rebar and €590-600/mt FOB for wire rod.
Interesting import offers have also been noted. Ex-Turkey rebar offers have been reported stable at €560-565/mt CFR southern Europe and wire rod at €575-580/mt CFR. Ex-Egypt rebar has been offered at €555/mt CFR and wire rod at €565/mt CFR. Additionally, a sale of a lot of 30,000 mt of wire rod from Asia to northern Europe has been reported at $525/mt FOB, approximately €530/mt CFR considering the freight cost of $50/mt and the current exchange rate of $1 = €0.92.