The European long position market remains mostly cautious after returning from the winter holidays this week, but several market players already believe that prices will rise in the coming days amid rumors about the dynamics of scrap metal prices and speculation related to CBAM.
In the local Italian rebar market, prices remained stable compared to pre-holiday prices, i.e. at the level of 290-300 euros per ton of finished products (550-560 euros per ton of finished products, including the usual additional costs). Italian manufacturers already intend to increase this level as soon as the market is at full capacity – some production facilities will be idle for several more days – but at the moment no official changes have been recorded. "Local producers[Italian steel]certainly intend to raise prices for[finished steel], including against the background of international growth trends," the source commented. Another Italian trader, however, said: "It will be difficult to raise prices. The resumption of production will lead to a 5-fold increase in supply, which already exceeds domestic demand."
As for Italy, prices for wire rod in the local market in January ranged from 565-590 euros per ton, taking into account the quality of the mesh, and 585-620 euros per ton, taking into account the quality of the drawing, although contracts for lower prices are becoming less frequent. Based on what some market sources report, in fact, against the background of CBAM speculation, the beginning of a new quota period in the EU and an upward trend in international markets, there will be an increase of 10-20 euros per ton.
It is also worth mentioning that a major Italian manufacturer has dropped that it will not rush to complete sales in January and therefore can afford a further increase in prices above the average list.
It is also important that yesterday, January 8, ArcelorMittal announced a slight price increase of 40-50 euros per ton due to increased costs associated with CBAM, although this information had not been confirmed at the time of publication.
In the wire rod markets in Central and Eastern Europe, hypotheses about price increases may be more modest, by about 10 euros per ton, but even in this case this is not confirmed information, since, as already mentioned, no specific changes were recorded this week.
In the export market, rebar prices from Spain to UK ports are reported to be around 580 euros per tonne FOB, 10 euros higher than the last level recorded by SteelOrbis, while there have been no reports of price changes from Greece, as many market players there are still inactive after the crisis. winter holidays.
Finally, an increase in prices for rebar and wire rod from Turkey was recorded in the import market.
