Overview of Demand in Southern Europe
Cheap imports, high feedstock costs, and minimal construction activity continued to weigh on demand in the Southern European rebar and wire rod market in the week ending September 25.
Current Price Assessment
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) in Italy was €590-610 ($657-680) per tonne on Wednesday. This price has remained unchanged since September 11.
Factors Affecting Demand
Demand was reported as weak, largely due to slow consumption in the construction sector and an influx of cheap imports. A rebar producer noted, “Imports from China, Indonesia, and Algeria put further pressure on domestic rebar demand.” The high costs faced by European producers make it difficult to compete with exporting countries in Asia and North Africa.
Pricing Trends
Offer prices for rebar were reported at €600-610 per tonne ex-works. However, most sources indicated workable prices ranged from €590-600 per tonne ex-works. A trader stated, “Mills are trying to raise prices, but the market is calm, leading customers to doubt price increases.” Demand remains low, and competition for orders is intense.
Scrap and Billet Prices
Scrap prices edged down week-on-week due to competitive billet prices from Asia. China’s steel billet exports totaled 349,285 tonnes in August, a 127% increase from the previous year. Turkey was the largest buyer, taking 204,411 tonnes, or 59% of China’s total exports.
Fastmarkets calculated its daily iron ore 62% Fe fines index at $96.07 per tonne on Wednesday, up 6.67% from $90.06 per tonne the previous week. The index for steel scrap HMS 1&2 (80:20 mix) from North Europe to Turkey was $360 per tonne, down $5.19 from the previous week.
Regional Price Assessment
Fastmarkets’ price assessment for steel reinforcing bar (rebar) delivered in Spain was €620-625 per tonne on Wednesday, reflecting an increase of €5-20 per tonne from €600-620 the week before. However, market participants reported weak consumption and a silent export market.
Southern European Wire Rod Market
In the wire rod sector, Fastmarkets’ assessment for steel wire rod (mesh quality) delivered in Southern Europe was stable at €620-630 per tonne on Wednesday. Weak demand and high feedstock costs continue to impact European mills.
Published by: India-Inés Levy