Italian longs producers have reduced prices this week amidst a sluggish construction season and a subdued global market recovery. Argus reported a €15/t decline in Italian rebar assessments to €575/t ex-works, while the drawing-quality wire rod index softened by €10/t to €650/t delivered. Italian producers have adjusted rebar prices to €580/t ex-works, with levels of €560-570/t ex-works available for larger orders, potentially to stimulate buying interest before the Easter holiday. Despite these price adjustments, demand remains low as customers are uncertain if prices have bottomed out.
In Spain, offers were slightly lower last week, and discounts were achievable for significant tonnages in Italy and Spain due to import pressure.
The construction sector in Europe is slowly recovering, with Italian mills focusing on the central region and facing strong competition from Turkish suppliers in southern countries.
Despite a slight decrease in inflation rates, the outlook for interest rates remains uncertain, with expectations of only minor cuts. Construction activity is not anticipated to see a significant improvement, with fabricators maintaining rebar prices in the range of €650-690/t delivered in Germany.
Rebar prices from German mills vary based on tonnages, with some buyers still receiving delayed deliveries from last year due to lower-than-expected construction demand. In Poland, rebar prices have decreased locally, with offers of Bulgarian rebar also dropping under pressure from cheaper imports. Recent reports indicate that some European buyers have resumed purchasing rebar and a wire rod from overseas suppliers, hinting that prices may be nearing stabilization.
Turkish suppliers have been active in sales to Balkan markets, while Egyptian mills are focusing on markets like the Americas. GCC suppliers have shown interest in selling rebar to Europe, possibly due to prolonged market downturns in other regions.
