Prices for European long positions continue to follow various trends
Various trends are still being observed in the European long position market this week, with no significant changes in the overall mood. However, on the evening of October 29, an accident occurred at the Pittini Group Ferriere Nord industrial site in Osoppo (Northeastern Italy), and this event, according to some reports, may have consequences for the markets, in particular the Italian one, in the coming weeks.
Local rebar prices in Italy seem to have reacted well to the increase proposed last week by some manufacturers, stabilizing at 260-270 euros per ton per factory (525-535 euros per ton per factory, including the usual additional costs). "We have to recover the marginal losses incurred in September," said a source at the Italian steel mill. "The new prices remain stable, we could try to raise them even more."
According to another market participant, this further growth can indeed be realized, given the temporary shutdown of production that affected the Pittini Group plant in Osoppo after a fire on an electric transformer. "It's too early to assess the extent of the damage," he said. However, another source noted that this would be a variable that should be monitored and the possible impact it would have on finished steel production on the market should be taken into account.
On the other hand, prices in the wire rod segment are expected to decrease in November compared to October prices both in Italy and in the markets of Central and Eastern Europe. "The market in Central and Eastern Europe is not reacting as it should," one market participant commented.
In this regard, current wire rod prices are expected to decrease by an average of about 10 euros per ton. In particular, the prices of wire rod in Italy may decrease to 565-580 euros per ton with delivery in November for the quality of drawing and 545-560 euros per ton with the supply of mesh. On the other hand, in Central and Eastern Europe, wire rod prices in November may remain largely unchanged compared to October in terms of mesh quality and amount to 550-560 euros per ton, but decrease by about 15 euros per ton in the upper part of the price range for drawing quality to 560-575 euros per ton. In Germany, prices for high-quality wire rod for drawing are expected to decrease by 10 euros per ton to 575-590 euros per ton with delivery and by 5 euros per ton at a lower level for mesh, to 550-565 euros per ton with delivery.
Finally, in the import segment, rebar prices from Turkey decreased slightly in the upper part of the range compared to last week, thus amounting to just over 495 euros per ton CFR, which is also due to a slight change in the euro-dollar exchange rate, which stands at 1.155 today, October 31. On the other hand, prices