European long steel producers continue to push for price increases, but end buyers are not yet accepting them in full. High energy costs and logistical difficulties are weighing on the market, while import offers from Turkey have turned higher following a rise in international scrap prices.
In Italy, producers have so far been unable to raise rebar prices to €490 per tonne ex-works, excluding extras, or to €750 per tonne including standard extras. In Germany, buyers are gradually accepting an increase of around €10 per tonne. The situation in the country is complicated by logistics and low water levels in rivers.
Initial November indications for German wire rod stand at €690–705 per tonne delivered for drawing quality and €670–685 for mesh quality. The previous ranges were €675–690 and €645–660 per tonne, respectively.
In Poland, the latest confirmed rebar indications are around €670 per tonne CPT. Some market participants say mills intend to raise prices by around €30–35 per tonne to offset higher energy costs. In the wire rod segment, increases of €10 per tonne for drawing quality and €30–40 for mesh quality are being considered. If these plans are implemented, it would be the first substantial increase since September.
In that case, wire rod prices in Poland would rise to €690–700 per tonne delivered for drawing quality and €680–700 for mesh quality. Previous levels were €680–690 and €650–660 per tonne, respectively.
Energy costs also remain an important factor in Spain, but there are no new price indications for the domestic or export markets yet. Preliminary estimates put November wire rod prices at €690–705 per tonne delivered for drawing quality and €670–685 for mesh quality—around €10 higher than a month earlier.
Greek export prices are €640–650 per tonne FOB for rebar, €655–660 for rebar in coils and around €660 for mesh-quality wire rod. Compared with mid-October, rebar and rebar in coils have risen by around €10 per tonne, while wire rod is up by €10–20.
On the import market, offers from Turkey have changed direction following a rise in international scrap prices. Turkish rebar is offered at €585–595 per tonne CFR, and wire rod at €595–600. Both ranges increased by €5–10 over the week, while the euro-dollar exchange rate remained broadly stable.
Egyptian offers stand at €585–590 per tonne CFR for rebar and €595–605 for wire rod. The first price was unchanged over the week, while the second rose by €5. No offers were received from Algeria.
“Quotas are a serious problem for importers, especially in the wire rod segment. They have been exhausted, and this could prompt local mills to raise prices,” a market participant in Italy said.
Preliminary estimates put Italian wire rod prices in November at €700–715 per tonne delivered for drawing quality and €675–690 for mesh quality.
€1 = $1.12
