The European domestic market for long products remained generally stable during the week to May 28, with market participants reporting low activity amid weak demand and ongoing concerns about import quotas and legislative changes.
The declared cost of fittings for delivery to Germany was 650-660 euros per ton, and for delivery to Belgium - about 625-630 euros per ton. One trader reported that acceptable levels remained almost unchanged compared to last week, and prices for rebar from a plant in the Benelux region are at around 610 euros per ton.
Market sentiment in the long position segment remains weak, and one of the sources at the plant suggested that despite the fact that the plants hope to raise prices amid an expected increase in scrap production — perhaps by 20 euros per ton — the current level of demand does not contribute to any growth in the near term. "The market is very quiet, I hope June will be better," the source added.
Despite some anecdotal evidence that Southern Europe was seeing slightly better, most market participants described overall European demand as weak, especially heading into the early summer period. According to sources, imports of long products remained low, mainly due to stricter quota allocation.
Platts estimated the rebar at 625 euros per ton from the Benelux plant, which is stable week after week. Platts estimated average production volumes in the Benelux at 780 euros per ton, which is 5 euros lower compared to the previous week.
Devbrat Sakha
spglobal.com
