Prices for European long positions are declining amid sluggish activity
This week, the European long pipe market showed a significant decrease in demand, although there were no significant downward movements in prices for rebar or wire rod. Despite the general distrust of market sentiment, the bottom has probably been reached, as prices are unlikely to fall further in the current environment, at least in the rebar market.
In the Italian rebar market, prices are reported to be 250-260 euros per ton.-the basic cost of work (515-525 euros per ton without additional costs), the minimum is 240 euros per ton without additional costs (505 euros per ton without additional costs). Demand remains low as end consumers are reluctant to make purchases and wait for prices to reach a minimum level. However, according to a representative of the Italian steel mill, this level has already been reached, and "waiting too long would mean not receiving the goods on time" due to logistical problems in Italy. However, according to the Italian trader, the difficulties are related to oversupply: "If manufacturers do not come up with the idea of shutting down their factories, prices will certainly not be able to recover," he said.
A slight recovery in prices on the long paper market is taking place in Germany, where prices have increased slightly due to rising scrap metal prices and the previous shortage of fittings.
A slight decrease was recorded in the wire rod market in Italy, "due to the negative information about scrap metal that was distributed in May," the source commented. However, the market seems to be moving towards stabilization, and demand is currently being balanced by supply. According to the latest SteelOrbis research, wire rod prices in the local Italian market have decreased by 5 euros per ton compared to the previous level and amount to 620-635 euros per ton of high-quality wire rod for drawing and 605-620 euros per ton of mesh wire rod.
In Germany and Poland, on the other hand, wire rod prices were reported to be at a higher level, amounting, respectively, to 645-660 euros per ton with delivery and 630-645 euros per ton with delivery for high-quality wire rod for drawing and 610-625 euros per ton with delivery and 600-620 euros per ton with delivery for a mesh wire rod. Poland was particularly affected by the unfavorable dollar exchange rate, which declined from 1 US dollar = 4.14 Polish zloty at the beginning of the year to 1 US dollar = 3.68 Polish zloty on June 12.
As for the export market, prices for rebar and wire rod outside Greece have decreased. Prices for rebar from Spain to UK ports have not changed and remain at around 550 euros per ton.
Finally, the import market from Turkey is also stable and has not changed, while prices for rebar,