The European long position market is stable amid seasonal and international uncertainty
This week has been quiet for the European long position market. The summer lull continues to affect prices, which remain stable due to the lack of players in the market.
In the local Italian rebar market, prices remain stable and amount to about 295-300 euros per ton of finished products (560-565 euros per ton of finished products, including regular additional costs), revenue since the beginning of July has amounted to about 60 euros per ton. According to one local trader, "the market will resist." On the contrary, a source from the Italian factory commented on it this way: "This level will not be in effect in September, at least in Italy." Price pressures continue to increase, but in other European countries, such as Switzerland, a downward price correction seems to be the most likely scenario.
Nevertheless, market participants as a whole feel great uncertainty due to the next revision of protective measures (quotas), the introduction of CBAM and other seasonal factors, as well as ongoing international conflicts.
The transition to wire rod markets, no changes were reported. In Italy, local prices remain stable at 600-615 euros per ton of high-quality wire rod for drawing and 585-600 euros per ton of high-quality mesh wire rod.
Stable prices were also established in the export and import markets. Regarding the latter, prices for Turkish rebar and wire rod are still at 490-500 euros per ton CFR and 500-505 euros per ton CFR, respectively, while prices for rebar and wire rod from Egypt are reported to be 495-500 euros per ton CFR and 505-510 euros per ton CFR, respectively These prices are based on the euro-dollar exchange rate of 1.16 (European Central Bank, August 7).
Steelorbis.com