Bulgaria expects stable prices, but sentiment is deteriorating ahead of the summer recession
The Bulgarian long position market remained almost stationary this week, not because prices are reliably protected, but because there is very little demand for testing them. Purchasing activity remains weak, as full inventory in warehouses, limited availability of cash, and declining construction-related demand leave buyers with little reason to fully return to the market.
Payment delays and liquidity issues continue to affect procurement decisions, while the expected clarification of quota issues and new EU import regulations have become another reason for market participants to wait. However, sources emphasize that the main pressure is exerted by the lack of real consumption, rather than regulatory uncertainty.
"Demand is at a low level, and the market is developing very slowly. Buyers are already secured, liquidity is still a problem, and the holiday season is starting to affect activity. Regardless of the new import regulation, demand is likely to continue to decline, and prices may also come under pressure," said a SteelOrbis trader.
Against this background, the quotes of domestic long positions in Bulgaria have not changed this week. Rebar prices in Bulgaria remain at the level of 625-635 euros per ton excluding VAT, while wire rod prices remain at the level of 670-690 euros per ton excluding VAT.
No new orders or firm offers were received in the import segment this week, while most import indicators remained generally stable amid limited consumer interest. Among suppliers from non-EU countries, Turkish rebar offers are currently being heard at a price of $580-590 per tonne FOB, compared with $580-600 per tonne FOB last week. Taking into account the cost of transportation of about 20-25 euros per ton, these levels correspond to about 520-545 euros per ton in Bulgaria, which is generally stable from week to week.
Egyptian rebar offers are currently estimated at $580-600 per tonne FOB, while wire rod offers are estimated at $600-610 per tonne FOB. Based on the prevailing freight rates of about 25-30 euros per ton, these price indices for rebar in Bulgaria are approximately 530-555 euros per ton, and for wire rod - 550-565 euros per ton.
As for materials of European origin, Italian fittings are still offered at a price of about 655 euros per ton in Bulgaria, which has not changed since last week. Meanwhile, the estimated prices of Romanian rebar for delivery to Bulgaria decreased by about 10 euros per ton in