Romanian bond prices rose after EU quota changes, but concerns about demand persist
Romanian bond prices rose after EU quota changes, but concerns about demand persist
The Romanian long position market has strengthened this week following the announcement of a new EU quota period and a reduction in quota volumes.
The decrease in availability expected under the new quota structure has raised concerns about higher import-related costs and supply uncertainty, which has given sellers the opportunity to test higher prices, especially in the rebar segment. However, the overall reaction remains cautious both in the EU and outside markets, as demand across Europe remains weak and consumer activity in Romania remains limited. Market sources report that recent price hikes may be difficult to sustain unless buyers start to accept new levels, especially ahead of the August holidays and amid ongoing pressure on cash flows.
In the local rebar spot market, prices are currently around 620-640 euros per ton from the warehouse, compared to 620-630 euros per ton from the warehouse last week. Some sellers also offer from the warehouse at a price of about 650-655 euros per ton, while higher prices are being tested on the market.
It is reported that the domestic manufacturer Beltrame Group remains calm, and its rebar offers remain generally stable at around 635-640 euros per ton, which has not changed since last week.
In the wire rod segment, domestic prices increased slightly and amounted to about 685-695 euros per ton from the warehouse compared to 680-690 euros per ton from the warehouse last week. Demand remains low, and upward movement remains more limited than for rebar due to weaker customer interest.
As for imports, so far no new deals have been heard this week, as buyers are reviewing their positions after the announcement of the new EU quota period. According to sources, there have been offers to supply Italian fittings to Romania at a price of about 600 euros per ton, while Italian fittings in rolls are sold at a price of about 685-690 euros per ton. This week, offers were also received for the supply of Hungarian rebar in rolls to Romania at a price of about 695 euros per ton. Meanwhile, Bulgarian fittings and oil prices in Romania remain stable week after week and amount to about 650-660 euros per ton, excluding VAT. As for imports from non-EU countries, the supply of Egyptian rebar in Romania remains stable at 535-555 euros per ton, while the supply of Egyptian wire rod increased to 555-575 euros per ton compared to 555-565 euros per ton last week. Prices for Turkish fittings in Romania currently amount to about 525-540 euros per