Sources told SteelRadar that steel prices have decreased in Europe this week due to the slowdown in the market and the low level of sales. Buyers are expecting a further drop in prices and are therefore refraining from restocking, the sources added.
Germany
In Germany, HRC prices were trading in the range of €770-750 during February, but as of March 4, prices have decreased and are trading at €723. It was reported that many producers in Germany had to reduce production in order to stop the downward trend in prices, but demand for HRC is not expected to increase in the coming days. Meanwhile, rebar prices in Germany remained steady at €658 during February, but decreased slightly to €653 at the end of the month. It was reported that sales of long products have fallen due to the stagnant construction sector and the weak economy, and as orders continue to decrease, producers may consider cutting production in order to balance supply and demand. As for CRC prices, they were observed to be trading stable at €820.
Italy
SteelRadar data reported that HRC prices in Southern Europe have been on a downward trend, with offers from Italy starting the week at €695. Italy maintained its HRC prices in the €745-730 range throughout February, before dropping to €710 towards the end of the month.
Starting March at €695, HRC is expected to close the week at the same level. Sources informed SteelRadar that prices should have increased by at least €70-80/ton to achieve a slight margin, but prices have decreased further due to the subdued market. Some buyers have reportedly started importing from countries with long lead times, such as India, Taiwan and Japan, with prices in the €620-640/t CFR Italy range for April deals. Italy's CRC prices, on the other hand, continued to be traded at €82.
Netherlands
In the Netherlands, HMS 1/2 (80:20) recorded a high of $390 at the start of February, before dropping steadily towards the end of February and entering March at $366. According to SteelRadar data, compared to last month, it recorded a high of $393 in the second week of February and a low of $356 on March 5, down almost $30-40 over the course of a month.
HMS 1/2 (80:20) fell by $4, $13, $6 and $37 in total during the month, with regular declines of $4, $13 and $6, respectively, and the $356 level it reached on March 5 was maintained on March 6, SteelRadar reported. Market participants highlighted the uncertainty in the scrap market, emphasizing that the level reached is likely to remain stable given the downward trend in Benelux 1/2 (80:20) domestic prices over the past month, while sources said that the decline is unlikely to be long-lasting as they expect a recovery across Europe.
SteelRadar recorded the current price at $349 on March 7, down another $7.
Spain
HRC prices from Spain were recorded at €760 as of March, with a downward trend in prices. HRC, which traded at €790 in February, dropped by €30 to €760 towards the end of the month. SteelRadar data recorded Spanish HRC prices at €760 at the beginning of the week.
On the other hand, CRC prices increased to €835 by the end of February and maintained this level in the first week of March. Rebar prices, at €605, continued to be traded in the first week of March.
Poland
Rebar prices remained stable at €643 in the first week of March, SteelRadar data revealed. Sources expect demand in Poland's construction sector to increase in the coming quarter.
Wire rod, on the other hand, is expected to hold steady after decreasing by €15 to €690 at the beginning of the week.
France
In France, rebar prices are reportedly trading in the €620-630 range and French market sources are not willing to restock. Sources told SteelRadar that rebar processing costs at French mills are high and they may cut production if prices remain stable.
United Kingdom
According to SteelRadar data, wire mesh prices started March trading at $585, down from $605 at the end of February. While it remains to be seen how UK wire mesh prices will progress in the future, sources noted that the decline will continue and that they do not see a recovery in wire mesh prices until European and Asian demand picks up.
The current UK wire mesh price on March 5 continued its downward trend and was assessed at $569.
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