The European long position market remained mostly stable this week due to the absence of many market participants due to the holidays in a number of European countries. Republic Day (June 2) in Italy caused many players to leave the market for a long weekend, and Corpus Christi Day (June 4) in some Central European countries such as Germany and Poland had a similar impact at the end of this week.
The overall market sentiment is stable, although there are early signs of price declines. High supply, especially of fittings, and weak demand, combined with uncertainty about the precautionary measures that will take effect in less than a month, are forcing market participants to buy less, avoid stockpiling, and act with extreme caution.
However, overall product prices remained stable this week, partly due to shorter working days.
In the Italian domestic market, individual rebar purchase transactions were concluded at an unchanged level of 440-450 euros/base price per ton from the factory (700-710 euros per ton from the factory, including regular surcharges), although officially requests from factories remain at 460 euros per ton from the factory (720 euros per ton from the factory, including regular allowances). To maintain this level, several manufacturers in Italy are reducing production, but demand in the market for finished metal products remains very low.
"There are few requests, and customers are trying to lower prices," said a source at the Italian factory, referring to both domestic and export sales. As for the latter, official rebar offers from Italy are still being received at a price of 630 euros per ton on FOB terms, but, according to the source, "this is only a nominal level. Bulgaria and Romania received offers from Italy at a price of 600-605 euros per ton on FOB terms. " However, according to another source, transactions in other areas were concluded at a price of 620-625 euros per ton on FOB terms.
As for wire rod, the situation looks somewhat more stable: in Italy there are offers at a price of 695-710 euros per ton for the drawing quality and at a price of 685-690 euros/ton for the mesh quality. In the markets of Central and Eastern Europe and in Germany, the same quality is estimated at 685-700 euros per ton, while prices for hood quality in the aforementioned countries are 690-710 euros per ton and 685-700 euros per ton, respectively. On the other hand, in Spain the price level is much higher: 710-725 euros/ton for the quality of the drawing and 690-700 euros/ton for the quality of the grid. However, it should be noted that these are hypothetical levels that can change over the course of a month. All specified price ranges are provided to the customer.
Rebar supplies have increased in the Greek export market
