The European market for long positions is "tense and static," attempts are being made to raise prices, but demand is still low
The European long position market remained "tense and static" this week due to attempts by manufacturers to raise prices, which still do not attract buyers.
For example, in the Italian rebar market, manufacturers tried to increase prices by 30-50 euros per ton, depending on the factory, bringing them to 350-360 euros per ton from the factory (610-620 euros per ton from the factory, including the usual additional services). However, according to sources, buyers continue to recall previous orders at a price of 280-290 euros per ton from the factory (540-550 euros per ton from the factory, including the usual additional costs). However, according to the source, the volumes available at these prices are "now running out." "Manufacturers are worried," another source commented. "This war[in the Middle East]is having a serious impact, investments have collapsed, people are afraid to spend," he concluded.
Italian producers have decided to apply various strategies to cope with high energy prices caused by the war and record low demand. Some of them actually reduced production or suspended it for various periods of time, from a few days to more than a week, waiting for a clearer picture of demand.
As for the wire rod market in Italy, quotations are still suspended at the moment. "The situation is tense, and demand is still very low. Let's hope that local factories will not raise prices too much, otherwise the small demand there may disappear completely," said one of the market participants. "Demand remains low," another source confirmed. "The conflict in Iran has led to an increase in energy prices and, consequently, steel prices, as well as a decrease in demand. Unlike in 2022[post — Covid and war in Ukraine], when the market reacted by holding prices, there is a lot of uncertainty now. The market is not responding," he concluded.
In other European countries, wire rod supplies have also been temporarily suspended, and a major manufacturer is reviewing current orders with some customers. As for fittings, prices for them in Central Europe now amount to 580-590 euros per ton from the factory.
.Export markets remain calm, while imports from Turkey have tried to rise in price several times due to increased freight costs, which strongly affects shipments by sea. "In addition to the increased freight cost, shipments are delayed by three to four months," commented a European trader. "The ships are simply impossible to find," said another.
It is reported that import prices for rebar from Turkey to Southern Europe this week are at around 530 euros per ton, which is 10-30 euros higher than last week, while prices for wire rod,