European long-range distributors withdraw offers
Some European producers of rolled products operating in electric arc furnaces withdrew their offers on Tuesday after the prospect of significant and prolonged disruptions to gas supplies to the Middle East and the Persian Gulf led to a significant increase in European gas and electricity prices.
At least five Italian rebar manufacturers, one of which is also a wire rod manufacturer, halted deliveries on Tuesday after a morning flurry of inquiries as buyers expected significant cost-driven price increases. The factories said they would return with revised proposals within 48-72 hours.
The April contract for the supply of electricity in Italy was increased by 22.80 euros/MWh on Monday and for 16.70 euros/MWh on Tuesday, while the same indicator in Spain rose by 10.10 euros/MWh from Monday, while global energy and fuel prices are likely to rise. it may grow as a result of the conflict between the United States and Iran.
A source at one of the plants suggested that new offers could be at least 10 euros higher per ton and that prices were likely to rise significantly in the near future.
The Spanish manufacturer of rebar, wire rod and corrugated sheet also announced that they had withdrawn their offers on Tuesday after wire rod prices had increased by at least 20 euros per ton over the past few days.
It became known that a global steel producer with plants in several European countries had unofficially withdrawn from the corrugated sheet market, a German source said, while another source suggested that the plant had also stopped supplying wire rods to Spain.