The European long position market has quieted down amid expectations for CBAM and the upcoming winter holidays
No major changes were reported in the European long position market this week. Most of the discussion among the players focused on the long-awaited release of official benchmarks and default values for calculating the cost of CBAM, as product prices seem to remain stable and demand remains weak in the run-up to the Christmas holidays.
"We are trying to maintain our prices[rebar sales]," said a source at the Italian factory. The stated levels, however, have not changed since the attempts to increase last week, remaining in the range of 300-320 euros per ton excluding production (560-580 euros per ton excluding the usual surcharges).
The same applies to the wire rod market in Italy, where wire rod prices consolidated in December at 570-585 euros per ton, taking into account the drawing quality, and 550-565 euros per ton, taking into account the mesh quality.
The market discussion mainly focused on CBAM growth expectations among steel market players in all segments of Europe. In fact, according to some rumors, the official EU benchmarks and default values for calculating the cost of CBAM will be announced on December 16. "I hope that[the values]will help us figure this out, because everything is so unclear," the source commented. "We'll have fun next week," another source added.
In the meantime, no updates have been published on rebar export prices in Spain, which remain at 570 euros per tonne on FOB terms.
Nevertheless, there is a slight increase in prices in the Turkish import market. With the euro-dollar exchange rate unchanged at 1.17, prices for rebar in Turkey were reported to be 510-520 euros per ton, and for wire rod - 520-530 euros per ton, which is about 5 euros higher than last week. Prices for rebar from Egypt are reportedly 500 euros per ton, which is 5 euros higher than last week, and for wire rod – 505-510 euros per ton, which is stable from week to week. Finally, prices for rebar and wire rod from Algeria decreased by 15 euros per ton week after week, amounting to 490 euros per ton and 495 euros per ton, respectively.
.Author: SteelOrbis Editorial Team
Steelorbis.com