The European long position market did not show any major changes this week, as prices remain high due to a shortage of raw materials, but despite this, end consumers are not ready to buy, expecting lower prices.
As for the Polish market, the situation seems to have reached a dead end. Long-range buyers are trying to resist price increases, and those who can buy from the largest producers enjoy the greatest advantage. A wire rod seller in Poland said that the market situation is becoming more difficult because the prices they offer are too high for the local market. "This is the situation in Poland. Those who can buy the material from a major manufacturer can find it at a price of 680 euros per ton[with delivery]. However, this manufacturer sells it only to select customers. As a result, those who cannot buy from them have to put up with price increases of up to 720 euros per ton[with delivery], but this trend will not last long."
"Buyers are misjudging the market. At the beginning of the year, they had ready-made projects at low prices, and now they are trying to avoid losses. In the end, they will accept the inevitable," another source commented on the situation on the Polish market.
Further price increases of at least 25 euros per tonne are expected in the local Polish market in June, but most sources believe that the price will eventually rise by 5 euros per tonne.
According to market sources, there were offers for rebar and wire rod from Ukraine to the Baltic region at a price of about 660 euros per ton without VAT and 680-690 euros per ton without VAT, respectively, as well as offers for imports from Algeria to the same region at a price of 570 euros per ton CFR for rebar and 580 euros/ton CFR for the wire rod.
In Spain, the average price for wire rod in the domestic market is 690-720 euros per ton, excluding VAT. There were no changes in exports to the UK.
As for imports, Turkey's supply has not changed compared to last week, and prices for rebar and wire rod amounted to 550-565 euros per ton CFR and 560-570 euros per ton CFR, respectively. The Egyptian reported that prices for rebar are 560-565 euros per ton, and for wire rod and wire rod in coils - 565-575 euros per ton. Finally, prices for rebar in Algeria are 540-555 euros per ton, and for wire rod - about 560 euros per ton.
€1 = $1. 16
Author: Stilorbis
Steelorbis.com
