The rebar and wire rod markets in southern Europe are still stable, as attention turns to steel mills’ planned shutdowns in December, which in Italy could last anywhere from two to four weeks, mainly to counter rising production costs.
In the local rebar market in Italy, producers’ offers have predominantly been reported at €300/mt ex-works base (€565/mt ex-works including regular extras). However, according to some sources, recent contracts were closed at a minimum of €290/mt ex-works base (€560/mt ex-works including regular extras), or slightly higher. Therefore, the price range has been reported at stable levels of around €290-300/mt ex-works base (€560-565/mt ex-works including regular extras). With a slight increase in scrap prices and rising energy costs, several shutdowns by mills are expected, potentially spanning from mid-December to an entire month. "I have heard that some mills have even suspended sales to come out with price increases of €20-30/mt," commented one source. Despite this, demand continues to remain modest.
In the export segment, rebar offers from Italy have been reported stable at around €575/mt FOB by sea, while ex-Spain rebar offers have been reported in the range of €570-575/mt FOB, compared to last week's €575/mt FOB.
On the other hand, import prices from Turkey have decreased slightly: Turkish rebar is offered at €575-580/mt CFR southern Europe, down about €5/mt on the high end of the range, but down by $5-10/mt on US dollar basis, due to exchange rate fluctuations. Wire rod, on the other hand, has been offered at around €590-600/mt CFR, down by $10/mt on US dollar basis, but stable on euro basis.
Additionally, ex-Egypt offers have been reported stable at €565/mt CFR for rebar and at €575/mt CFR for wire rod, while ex-Algeria offers have been reported at €545-555/mt CFR for wire rod from stocks and €565-570/mt CFR for rebar, compared to last week’s range of €595-600/mt CFR (which was from a different mill).