There was no significant movement in the European long position market this week. Local prices for rebar and wire rod in Italy remained unchanged due to the celebrations of Easter, Liberation Day and Labor Day, and the situation is more or less similar in other European markets.
In Italy, local rebar prices are still at around 340 euros per ton of finished products (605 euros per ton of finished products, including regular additional costs), unchanged from week to week. "There will be no major changes until the 19th week", - an Italian source commented. As far as Wire rod is concerned, the local prices for hoods remained unchanged for the week at €635-650/t delivered, while the quality of the mesh brand still stands at €605-620/T delivered, also unchanged for the week.
For a long time, the demand for rolled steel was not brilliant in the Italian and European markets in March and April, and so several large factories decided to get rid of their long steel production capacities. In March, the production of rolled products in Italy amounted to 1.2 million tons. However, at the same time, manufacturers are expected to stock up as the summer season approaches, given supply disruptions in July and August. Since this is likely to lead to a decrease in the number of products available on the market, a possible price increase could be pointed out.
As for rebar, on the other hand, falling energy prices and scrap indicate a possible decline. Despite this, the market needs to take into account many volatile factors that make forecasts very difficult.
At the time of publication, there were no reported changes in export prices for rebar from Greece or Spain to the UK, which last week amounted to 595-600 euros per ton FOB and 580-585 euros per ton FOB, respectively.
Offers for the import of rebar and wire rod from Turkey decreased to 500-510 euros per ton and 510-520 euros per ton, respectively, prices decreased by 15-20 euros per ton compared to the previous week after a sharp drop in the market for imported scrap in Turkey. Price changes are calculated based on the exchange rate of the European Central Bank: 1 euro = 0.88 US dollars (April 23).
