Rebar suppliers in Europe returned to the market with higher prices in the week to Wednesday, March 11, after they stopped supplies last week due to the effects of the US-Iranian conflict.
Higher energy and fuel costs have forced suppliers to raise prices for fittings for domestic consumers, while competition from imports has weakened further due to rising transportation costs and increased lead times.
Suppliers in Germany increased their supply by 10-30 euros ($11.56-$34.70) per ton during the week, and new offers start from 650 euros per ton of fittings with a diameter of 8-32 mm.
In France, a similar material was sold at a price of 630-640 euros per ton.
In Austria, reasonable prices were also estimated at 630 euros per ton.
Fastmarkets' weekly estimate of prices for rebar steel rods supplied to Northern Europe on Wednesday was 630-650 euros per ton, which is 10-20 euros higher than 610-640 euros per ton on March 4.
Market sources said that suppliers offer a limited volume of products with a short shelf life amid the rapidly changing situation in the energy sector.
At the same time, demand remained moderate amid expectations of an improvement in construction activity due to the beginning of spring.
Factories in Southern Europe followed a similar policy, with higher prices recorded in Italy and Spain.
Factories in Italy have increased the supply of 8-40 mm thick ingots to 620-640 euros per ton from the factory, but buyers are reportedly cautious as "few applications are received." Reasonable prices were estimated at 600-620 euros per ton with delivery, but again with a very short validity period.
"Customers are disoriented. They remember what happened at the beginning of the Russian invasion of Ukraine, with rapidly rising prices and uncontrollable costs, but at the same time they fear that a quick end to the US-Iranian conflict will lead to a new decline in prices. Someone is buying,[while]someone is taking a wait-and-see attitude,[but]no one is optimistic about the near future," an Italian source on the stock exchange said.
"I can understand the caution of buyers, but believe me, manufacturers are very afraid to sell at prices that are not acceptable at higher costs. Consider also the psychological aspect for producers with the old economy.: We have always focused on scrap metal prices and its availability, so it is difficult for us to understand the hyper-speculative position of energy suppliers," the Italian manufacturer said on Wednesday.
"Even now, as I write, we are halting production for three to four hours a day to avoid peak energy costs.,
