Despite the gloomy outlook persisting for the domestic market, prices in Romania's long steel market have remained stable week on week. Meanwhile, the majority of market participants report that demand in the local market remains remarkably low, with sources claiming that, since current stock levels have begun to fall slightly, particularly in rebar, sales at lower prices have begun to be made just for higher tonnages, which has raised expectations of a price increase in the market.
“Prices are still close to the bottom reached almost a month ago but most transactions are now closer to the upper range because material availability will become an issue in two to three weeks, which may push prices up slightly,” a trader told SteelOrbis
Currently, local Romanian spot rebar prices are stable at €560-580/mt ex-warehouse. Similarly, the sole domestic mill continues to keep offers stable week on week at €575-580/mt ex-works.
In the meantime, although no deals have been reported, diminishing supply may cause Romanian traders to turn to imports in the coming weeks. Reports state that, although Greece's offers for rebar and wire rod have dropped to €645-660/mt CFR and €635-650/mt CFR from €655-660/mt CFR and €645-650/mt CFR, respectively, Moldova has maintained its rebar offers at €590/mt CPT. Egypt, meanwhile, has maintained the same prices for rebar and wire rod as last week at €565-570/mt CFR and €580-585/mt CFR, respectively. In contrast, Turkey's rebar offers have increased week on week and, based on the mills’ prices of $580-590/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 = $1.09.
On the other hand, in the wire rod market, the same strategy has been observed. Even though demand is at minimum levels, most traders have quoted the same prices as before at around €570-590/mt ex-warehouse.