Polish steel rebar producers increased prices late last week to take into account rising energy costs, while buyers, according to market sources, quickly put up with this increase, according to Fastmarkets.
The offer from the local plant CMC Zawiercie reached PLN 4,100 (USD 860) per ton of delivered products (equivalent to approximately PLN 4,050-4,070 per exw ton), with some transactions registered at this level during the evaluation week.
Celsa Huta Ostrowiec, another local mill, was aiming for a higher offer price of PLN 4,300 per ton with delivery (around PLN 4,250-4,270 per ton for export), but buyers did not find this acceptable.
ArcelorMittal has yet to announce a new offer price, but the steel mill is reportedly considering a price increase.
As a result, Fastmarkets estimated prices for Polish steel rebar on Friday at PLN 4,050-4,150/t, up PLN 250/t from PLN 3,800-3,900/t on August 12.
Estimate was based on deals, flooring and buyers' assessment of achievable prices.
Spot market activity picked up last week and buyers expect prices to rise further in September due to unpredictable energy prices.
“There is some restocking going on right now because people are afraid of a bigger increase in September,” said one trader. “But, on the other hand, everyone is worried about [consumption] prospects for October, because there are not enough large infrastructure projects in construction.”