European long products prices have been broadly flat in the past week, but trading was slower than expected as the market lacked direction.
Participants were anticipating demand to strengthen, with prices receiving support from rising scrap costs, but at the same time buyers were reticent as they expected energy costs to recede.
Argus' weekly Italian rebar and drawing-quality wire rod assessments were flat at €805/t ex-works and €850/t delivered, respectively.
In Italy, most mills indicated rebar offers at €570/t ex-works base, but their sales levels were at €550/t ex-works, with some producers still discounting to €540/t ex-works. Effective workable levels remained at €800-810/t ex-works this week. Demand was weak, with buyers not convinced of the increases announced by mills, sources said.
Into central Europe, Italian rebar was on offer at €820-825/t delivered, while rebar in coils was available at €850-860/t delivered. Polish and German producers announced higher prices but failed to attract interest at new levels, and in fact orders were closed at lower levels. Offers of rebar in coils from German mills were reported at €880/t delivered, but further discounts were deemed available.
Offers to Romania were tabled at €775/t cfr for rebar and €785/t cfr for rebar in coils late last week, but €10-15/t discounts were heard available from mills who were eager to fill their order books. But there was also talk that regional suppliers are seeking higher prices, as while energy costs remain volatile scrap and billet prices continue trending upwards. Construction demand remains good, as there are many small or mid-sized projects and the winter has been mild, a regional market participant said.
In the wire rod segment prices stood at €830-850/t ex-works, with mills still focusing to sell to higher-priced markets. Import activity was subdued after southern European buyers restocked from the Black Sea and Turkey earlier this month, while negotiations with north African suppliers for April shipments are under way. But overseas suppliers were quoting wire rod at no lower than $800/t fob, with some up to $850/t fob after a rise in production costs.
