European prices for long positions are mostly stable both domestically and for export
The European long position market remained generally stable this week in the absence of obvious price factors.
Overall, the supply of rebar continues to exceed the supply of wire rod, although demand for both types of products remains weak due to the slowdown in secondary markets ahead of the summer season, as well as ongoing geopolitical and regulatory uncertainty.
Official quotas for specific products under the new EU protective measures, which will come into force on July 1, were published earlier this week, although quotas for specific countries have not yet been disclosed. This development caused discontent among market participants, who expected more clarity, since the project was less than two weeks away from the start of the project.
As a result, the European long position markets are experiencing what one market source described as a "general and intersegmental price change."
In the Italian domestic market, rebar prices still remain at 440-450 euros per ton from the factory (700-710 euros per ton from the factory, including the usual additional costs), despite very low demand, while prices for high-quality wire rod remained at the same level, supplies remain at the same level. which was reported last week - 695-710 euros per ton.
"Factories will fight hard to avoid price cuts, as they would rather ship raw materials outside Europe, where possible, than lower their[price]levels," the source commented. Accordingly, the export prices for rebar and wire rod from Italy in the latest offers also remained stable.
As for demand, buyers continue to act cautiously, limiting purchases to immediate needs and avoiding inventory creation.
In Germany, long products prices also remained stable, helped by virtually unchanged scrap metal prices and expectations of lower electricity prices following the introduction of new support schemes.
However, downward pressure has emerged in the domestic Polish market, as delays in the implementation of ongoing government infrastructure projects reduce demand. "We hope that the situation will recover after the summer, including thanks to new protective measures," two different market sources said.
According to the available data, the proposals of the plants for the production of fittings were announced at a price of about 680 euros per ton without VAT, while the real deals were concluded at about 670-675 euros per ton without VAT. It was also reported that traders' offers amount to only 650-660 euros per ton of CPT. As for wire rod, it was reported about offers at a price of about 690-710 euros per ton without VAT, while one source