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Demand uncertainty continues in Europe's steel sector

In the European rebar and wire rod markets, prices remained stable in both Northern and Southern Europe, while demand in the sector remains uncertain.

Demand uncertainty continues in Europe's steel sector

Rebar prices in Germany remained stable at EUR 620, while prices in Poland continued to trade at EUR 625. Wire rod prices in Poland, on the other hand, decreased by EUR 2 to EUR 638. This decrease is seen as a reflection of lower demand and raw material cost reductions. A distributor source stated that price increases are unlikely in the third quarter and prices could decrease further in September when all mills return to the market.

However, a producer source noted that Poland's construction sector may experience a rebound after the summer as demand picks up. "I expect demand to pick up in September, but I think it will be difficult to restock," this source opined.

In Southern Europe, increases in raw material and energy costs in particular are among the most important factors that may affect the future course of prices.

In Southern Europe, rebar prices in Italy and Spain were stable at EUR 590 and EUR 600, respectively. In Italy, wire rod prices remained unchanged at EUR 635, with an increase in prices expected in the future due to higher scrap prices. Slow demand and fluctuations in energy costs were cited as the main reasons for the stable prices for the time being.

Across Europe, prices remain largely stable, but the general weakness of the market and uncertainties in raw material prices are causing concern. In Northern Europe in particular, the economic recession is keeping prices under pressure, while in Southern Europe, supply chain issues and raw material costs are paving the way for price increases. However, in some regions, such as Poland, there is hope for a recovery after the summer.

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