Rebar prices in Italy were unchanged in the week to November 11, with weak demand holding back deals even as producers tried to raise prices because of rising costs. Prices rose in Germany and other Northern European countries amid high energy costs and limited production.
“Very few deals are being concluded because demand is extremely low,” a producer representative told Fastmarkets.
Market participants noted that high energy and fuel prices are increasingly complicating the production of long steel products. One seller said prices had risen significantly in Germany. Another said producers were carefully managing output, while export orders were helping to offset weaker domestic demand.
“Our costs are very high, and all producers are managing inventories, combining export orders with production cuts. We are trying to halt production during peak electricity-price hours,” the seller said.
A buyer also said there were almost no signs of a demand recovery, while costs were rising sharply. According to the buyer, some market participants were considering halting steelworks for one to two weeks.
In Northern Italy, deals, offers and market-acceptable prices stood at €760–780 per tonne ex-works; producers were seeking to raise the floor to €770 per tonne. In Southern Italy, the range was €770–790 per tonne ex-works. Mills were looking to raise prices to as much as €800, but market participants did not consider this level achievable.
Fastmarkets’ assessment of domestic Italian rebar prices ex-works on November 11 remained at €760–790 per tonne. In Spain, the delivered price was also unchanged at €750 per tonne.
In Northern Europe, offers and market-acceptable prices for rebar stood at €740 per tonne delivered. Fastmarkets’ weekly assessment reached this level, compared with €660–700 per tonne the previous week.
Production in Germany was limited because of high energy costs; according to market participants, low river levels were also affecting plant operations.
“Energy costs have risen in Germany, and mills are not operating at full capacity because of river levels,” a producer representative told Fastmarkets.
European wire rod prices were unchanged over the assessment period. In Southern Europe, market-acceptable prices for mesh-quality wire rod stood at €670–680 per tonne delivered. Fastmarkets’ weekly assessment remained within this range.
In Northern Europe, prices stood at €705–715 per tonne delivered. Fastmarkets’ assessment was also unchanged and remained within this range on November 11.