The longs product market in southern Europe is picking up, but progress remains slow. After the summer closures and breaks, demand seems to have "stayed on vacation", according to some sources. Prices have either decreased or remained nearly stable compared to early August, with no significant changes. Buyers are currently very cautious and are keeping an eye on scrap prices, which are trending downward.
In the local Italian rebar market, activity has been quite slow, with offers ranging at €300-320/mt ex-works base (€565-585/mt ex-works including regular extras) and with some sporadic offers as low as €290/mt ex-works base (€555/mt ex-works including regular extras), declining from €320-340/mt ex-works base (€585-605/mt ex-works including regular extras) at the beginning of August. Scrap prices have now decreased by €20-25/mt and some sources have said they will decrease more, but Italian steel mills are not ready to pass on the full reduction to finished products, partly due to concerns over electricity costs. For the next month, a possible further drop of €5-10/mt in rebar prices is expected, or prices may remain stable. "Customers have low inventories, but not enough work," one source commented, emphasizing that an upturn in the short term is unlikely.
Italian wire rod is following a similar trend, but at a slower pace, as is customary for this segment. Italian offers have been reported at €640-650/mt delivered for drawing quality in the local market, and €610/mt delivered for mesh quality in the export market.
The export market has also seen limited activity, with stable or declining offers. Official ex-Italy rebar offer prices have settled at €580/mt FOB, but some sources have reported even lower prices. Ex-Greece offers for rebar have been reported at €620/mt FOB, with wire rod at €610/mt FOB, both stable compared to early August. Ex-Spain rebar offers have dropped to around €570/mt FOB, down from €600/mt FOB at the beginning of the summer.
As for import offers, ex-Turkey prices have declined compared to a month earlier: Turkish rebar has been offered at €540-550/mt CFR southern Europe, with wire rod at €560-570/mt CFR. Egyptian rebar has also seen a monthly decrease of around €30/mt (partly due to the fluctuation of the euro-dollar exchange rate), currently priced at €525/mt CFR, with readiness for October cargoes, while ex-Egypt wire rod offers have been reported at €545/mt CFR, for October cargoes. Ex-Indonesia offers have been reported at around €480-495/mt CFR, with buyers requesting a further reduction of €8-10/mt.