The domestic long products market in Europe remained weak in the week to June 4 as demand did not recover from the recent holidays, with participants citing a seasonal slowdown and regulatory uncertainty, especially regarding the carbon boundary adjustment mechanism, as key factors.
The market prices for rebar remained virtually unchanged over the week and amounted to 650-660 euros per ton for delivery to Germany and 625-630 euros per ton for delivery to Belgium. One trader noted that prices in Benelux are at the level of 615-620 euros per ton, reflecting the limited movement of transactions and the constant caution of buyers.
"Factories are trying their best to keep the price down - it's not brilliant," said a source at the exchange. "Demand is weak for many reasons; the economy is what it is, and there is still no clarity on the implementation of CBAM. We still don't have any control values to work with."
It was heard that the middle segments were trading at 785 euros per ton for delivery to Benelux with volumes of about 2,000 tons, and broader traded values were observed at 785-790 euros per ton for delivery.
In the long segment, participants noted a decrease. The combination of the May holidays and the early start of the summer recession dulled consumer appetite. "It takes longer to coordinate costs, and activity is slower than expected," said one distributor.
Proposals that take into account carbon emissions are still facing resistance, and the stated premiums of 30 to 65 euros per ton are considered unworkable in the current market. "It's a good idea, but it's not working," one of the sources said. "People pay for certificates, but the quality of the products remains the same."
Platts estimated the rebar at 620 euros per ton at the Benelux plants, which is 5 euros lower than in a week. Platts estimated average rebar prices at 780 euros per ton for Benelux shipments, stable during the week.
At the same time, Platts estimated the average prices for carbon-adjusted rebar and carbon-adjusted rebar at 30 euros per ton, stable during the week.
Devbrat Saha
spglobal.com
