The Romanian longs market's long-standing downward trend has continued this week. Since no improvement has been witnessed in the local market and the ongoing low demand is putting pressure on the market, the sole Romanian rebar producer has decided to reduce its prices, causing traders' offers to fall even more.
“Demand is currently very low, and the sole producer has reduced its offers, and so everyone has followed suit,” a medium-sized trader told SteelOrbis.
However, major traders believe that, while demand is now relatively low, with some local development projects planned in the near future, demand may increase.
“Demand here is a little sluggish, but, with the new projects, it may push forward,” a bigger trader told SteelOrbis.
As a result, the domestic rebar price range has declined by around €15-20/mt to €575-580/mt ex-works. Likewise, domestic retail offers have decreased to €560-580/mt ex-warehouse, from €575-585/mt ex-warehouse a week earlier.
On the other hand, wire rod prices have dropped by €10-20/mt week on week to €570-590/mt ex-warehouse. While, according to sources, some wire rod retailers are attempting to maintain their higher pricing at €600/mt ex-warehouse, which is not feasible in the present market conditions.
Moreover, this week there have been some import offers, with Greece's rebar and wire rod offers rising to €655-660/mt CFR and €645-650/mt CFR from €625-630/mt CFR the previous week, respectively. Similarly, Turkey's rebar offers have increased week on week and, based on the mills’ prices of $575-585/mt FOB and freight costs of $25-30/mt, the levels to Romania should be at or around €560-575/mt CFR at the current currency exchange rate of €1 = $1.07. Meanwhile, Moldova's rebar offers have decreased to €590/mt CPT, from €605/mt CPT last week.