Germany
The rebar market in Germany came under pressure in the first week of September, with prices decreasing by EUR10 to EUR610. 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, they added.
In September, HRC prices in Germany decreased by EUR 10 to EUR 615. CRC prices remained stable at EUR 725. Prices in the German sheet metal market have been under pressure amid generally low demand, and may decrease further due to a shortage on the supply side. According to many industry representatives, this could lead to further price decreases, especially in the absence of supply disruptions.
German iron ore prices increased by EUR 2 to EUR 89.22. In Germany, recovering demand and higher energy prices are driving iron ore prices higher. Lower production costs across Europe and the effects of the energy crisis may also cause price fluctuations.
E40 scrap prices in Germany have remained stable at around EUR 380 as of September 2024. This price stability is mainly due to limitations in scrap supply and balanced domestic demand. Demand, especially from foreign markets such as Italy and Türkiye, has kept prices stable in the German scrap market. However, the supply-demand balance continues to be affected by the difficulties faced by domestic producers in obtaining scrap. Market players expect prices to remain at the same levels in the coming weeks as scrap supplies remain tight.
Poland
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.
Wire rod prices in Poland decreased by EUR 13 to EUR 625 in September. The recession and lack of demand in Poland's construction sector has led to the price decline, which is also supported by lower demand globally.
Italy
The picture is similar in Italy. HRC prices started September with a drop of EUR 5 to EUR 610. CRC prices remained stable at EUR 740. Sheet producers and distributors in Italy noted that capacity reductions could play an important role in preventing further decreases as they monitored the weakness of the market. In Italy, sluggish demand and global uncertainties continue to weigh on prices.
In Southern Europe, on the other hand, rebar prices have been more stable, trading around EUR 590 in Italy.
Italy's E3 scrap prices started the week at EUR 328, a decrease of EUR 3. The scrap market in Italy is relatively stable, but lack of demand is preventing prices from further increases.
Spain
In Spain, HRC prices remain stable at EUR 630, while CRC prices continue to trade at EUR 750. There is no sign of any recovery across the market. Lack of demand and weak market conditions are also reported to persist in Spain.
Distributors and traders across Europe are saying that the market is still quiet, demand is not expected to pick up and uncertainties persist. Moreover, the European Commission's anti-dumping investigation is adding to the uncertainties regarding some export countries. Türkiye in particular stands out as the most likely alternative to fill this gap.
In Spain, rebar prices continue to trade around EUR 600. However, small price decreases are expected in these regions as factories resume full capacity after the summer break.
Benelux
The Benelux scrap market decreased by EUR 10 to EUR 280 in September. However, it was noted that prices are unlikely to decrease further due to shortages in scrap supply. There is talk that the market could rebound on the back of high demand from Turkey, but overall weak steel sales are adding to the pressure on prices.
Netherlands
Scrap prices in the Netherlands increased by USD 4 to USD 338. This increase is attributed to higher demand from countries such as Türkiye and higher logistics costs. However, demand fluctuations are observed across the market.
UK
Steel mesh prices in the UK started the week with an increase of 6 USD to 568.50 USD. Signs of recovery in the UK's construction sector contributed to this increase, while local demand is expected to support these price levels.
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