European prices for long rolled steel continue to rise despite the start of winter

European long steel prices rose last week, reflecting rising input costs and lower production volumes.

Argus analysts' weekly estimate for Italian rebar rose 10 euros to 580 euros per tonne ex-works. while the market for wire rods of drawing quality remained unchanged at 610 euros per tonne.

Sales prices for Italian rebar in the domestic market increased from 570-580 euros ex-works to 590 euros per tonne ex-works, including surcharges for sizes. Few manufacturers continued to take orders for deliveries into 2023, with maintenance expected to be extended by one or two weeks.

In the day-ahead market, the Italian spot index (Pun) rose to 143 this week .70 euro/MWh. Scrap prices on the international market also continued to rise, supporting EU values. Italian wire rod of drawing quality was selling at €610-630 per tonne, supported by tight quotas.

Offers of Italian rebar to neighboring countries were reported to be around €570 per tonne fca, but sales were limited and mostly for urgent needs, and negotiations for larger tonnages are expected to begin in December.

In Germany, local producers offered rebar at a price of 610-640 euros per ton depending on the volume of supply, but there was no interest in it little, since manufacturers evaluated cut and bent reinforcement at the same level. But as producers' inventories were replenished at around 580 euros per tonne of product supplied, they did not profit from sales at that level, a regional trader said. Reinforcement in rolls from German factories cost 30-40 euros more. Construction is expected to accelerate in some EU countries next year due to new infrastructure projects, but there is little activity at the moment, a market participant said.

In Bulgaria, the only local manufacturer has raised prices for rebar to 1,250 levs per ton (approx. €639/t) delivered to local buyers and €630/t delivered to Romania late last week, with limited availability reported.

In the Baltics, rebar from Poland was available at price of 620-630 euros per ton with delivery.

In Spain, a price increase of 30 euros was announced, with local offers for wire rod indicated at 645-660 euros per ton, although the latest workable levels were announced at €615-625 per tonne depending on grade.

Negotiations continued across Europe for long products from Turkey, Egypt and Algeria, with orders from Turkey and Egypt reported in previous weeks. Egyptian suppliers received orders in the range of US$570-580 FOB for January-February delivery to Europe and other markets and were targeting sales of US$580-590 FOB this week, with receipts at the high end of the range. high quality wire rod. Turkish rebar remained available at US$585-$590 FOB, with wire rod priced US$10 higher after small tonnes of rebar for December shipment were booked at the lower end of the range for the Balkan region last week.