The rebar market in Germany came under pressure in the first week of September, with prices decreasing by EUR 10 to EUR 610. Distributors and rebar benders have been complaining about low demand and price pressures in the construction sector throughout the year, while the market is expected to remain in financial difficulties. Sources pointed out that profitability on new orders will further decrease in the second half as earnings from old projects decrease. This has created a market dynamic in which selling prices are approaching, and sometimes even below, rebar purchase prices.
A similar trend was observed in Poland, where prices decreased by EUR 1 to EUR 625. Sources noted that the long steel market in Northern Europe has remained quiet amid the summer lull. Weak demand and low activity in the construction sector are dampening recovery prospects, while economic uncertainties and regulatory hurdles are complicating the process. Overbuilding stocks are exerting downward pressure on prices and some producers are turning to other parts of the European Union to find more affordable markets for their products.
Poland in particular stands out as an attractive market thanks to fewer regulatory restrictions. A buyer in the Netherlands noted that this country has high development potential.
In Southern Europe, rebar prices are more stable, trading around EUR 590 in Italy and EUR 600 in Spain. However, small price decreases are expected in these regions as factories return to full capacity after the summer holidays.
Although wire rod producers stabilized their prices during the summer lulls, it is expected that lower offers of EUR 10-15 are likely to hit the market in September. Production processes and market dynamics, especially across Europe, are among the most important factors affecting these price changes.
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