The main topic in the European steel market during the week beginning 6 July was the implementation of the new EU country-specific safeguard quotas (CSQs). While market participants have differing views on the new measures, there is broad consensus that their full impact is likely to become more evident after the summer holiday period.
Rebar and wire rod prices remained broadly stable on a weekly basis. In Italy, welded wire mesh prices reached EUR 550/mt ex-works (approximately EUR 780/mt delivered), while rebar prices remained at around EUR 440/mt ex-works (approximately EUR 700/mt delivered). As a result, the price gap between the two products widened to approximately EUR 110/mt, significantly above normal market levels.
The new quota regime is expected to support prices by limiting imports. However, some market participants believe that European producers could offset any potential supply shortages by increasing capacity utilization. At the same time, importers are expected to adopt a more cautious purchasing strategy due to the high duties applied when quotas are exceeded. Rather than building inventories, service centers and distributors continue to purchase only the volumes required to meet immediate demand. According to current estimates, around 97,000 tons of Turkish-origin steel products alone are exposed to quota-related risks. Market participants generally expect the market direction to become clearer during the autumn months.
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