Domestic steel rebar in Europe have been largely stable over the past week across most regions, but Italian mills managed to achieve slight upticks ahead of their holiday season, sources told Fastmarkets on Wednesday August 5.
*** Southern Europe
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Southern Europe, was €۴۲۵-۴۴۰ ($۵۰۰-۵۱۸) per tonne on Wednesday, widening upward from €۴۲۵-۴۳۵ per tonne last week. The assessment was based on deals and offers heard in the market. In Spain, prices were largely flat in a seasonally slow market, but Italian mills managed to achieve slight increases on good buying activity.
*** Italy
In Italy, rebar was trading at €۳۹۰-۴۰۵ per tonne ex-works, widening upward by some €۵ per tonne over the past week. This would be equivalent to about €۴۲۵-۴۴۰ per tonne delivered, sources told Fastmarkets. “It’s harder to get material at €۴۲۵ per tonne delivered this week, but it is still possible,” one trader said.
“These are the final days [of trading] before the summer stoppages. There is still good rebar demand, and customers are [working very hard] to find trucks for the last deliveries,” a second trader said.
“We are near to the stoppage for summer holidays so steel producers are asking more than [they did] last week,” one consumer said. “Today, we are paying €۴۳۵-۴۴۰ per tonne instead of €۴۲۵-۴۳۵ per tonne in late July – it depends on the company and on the availability of [specific rebar] diameters. We think that this price will last until September.”
Several other sources said that they were expecting another round of price increases starting in September. “Producers intend to push [rebar] prices up by some €۲۰ per tonne after the restart [in the last week of August],” one distributor said. “We will see at the end of August if they’ll do it.”
*** Spain
In Spain, trading activity remained slow this week. Rebar prices were fairly stable, sources said, trading at €۴۲۵-۴۳۰ per tonne delivered, the same as last week. Market participants expected no price changes before the end of the summer holidays. “The market will be dead until the end of August,” one mill source said.
Spanish producers were said to have good order books both domestically and for exports, so sources were not excluding a price increase after the holiday season ends.
*** Northern Europe
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €۴۵۰-۴۶۰ per tonne on August 5, the same as a week ago. “Order entry is very good, and actually exceeds the previous-year level,” one producer said.
Strong demand from the construction industry in most countries was supporting prices at the current higher levels, sources said. But an expected feedstock price increase in August might trigger further rebar price rises after the holiday period.
“Margins are insufficient now. Besides, [the cost of] scrap is expected to [go up by] €۵-۱۰ per tonne in August. We will try another price increase in September,” another mill source said.
“I see a small improvement in the German market but no big price jump now,” one German buyer said. “After the summer, however, an increase will be possible considering the lack of material in Germany due to mills’ holidays.”
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