Despite the ongoing poor sentiment in Romania's long steel market, local traders have decided to raise their offers slightly, while the sole local producer's offers have remained unchanged. The main cause of the increase in the spot market are the declining stock levels in the retail market, particularly in the rebar segment. However, market participants worry that, due to a lack of demand, these increased levels may be rejected by customers, resulting in an inevitable decrease.
“Although prices have increased somewhat from the previous week owing to cost increases, sales are still very poor and so prices may fall again,” a trader told SteelOrbis.
Local Romanian spot rebar prices have increased to €570-590/mt ex-warehouse, from €560-580/mt ex-warehouse a week earlier. On the other hand, the sole domestic mill's rebar price remains stable at around €575-580/mt ex-works.
On the other hand, similar increases have been observed in the wire rod segment, with retail prices rising by €5-10/mt week on week to €580-595/mt ex-warehouse.
Although no purchases have been reported in the import segment this week, there have been several import offers. According to sources, Greek rebar and wire rod offers have remained stable at €645-660/mt CFR and €635-650/mt CFR, respectively, while Moldova's rebar offers have increased to €590-600/mt CPT, from €590/mt CPT last week. Egypt, meanwhile, has decreased prices for rebar and wire rod from last week by €10/mt and €15/mt CFR to €555-560/mt CFR and €565-570/mt CFR, respectively. Similarly, Turkey's rebar offers have decreased 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 €555-570/mt CFR at the current currency exchange rate of €1 = $1.09. In addition, Bulgaria has offered rebar at €600-610/mt CPT, down from the previous offers at €625-630/mt CPT.