This week in the European steel market!

In the European steel market this week, although an improvement in consumption in the hot-rolled coil market was expected compared to the previous weeks, the expectations fell short as buyers were not satisfied, even though there was an increase on November 9th, Wednesday, and it was insufficient to meet the expectation.

With the stock replenishment activity to ensure tonnage along with deliveries in the first quarter of 2024, purchasing activities in Europe were directly affected. Some steel producers mentioned that due to production disruptions, demand has decreased, leading to an ultimate result of price increases. In this context, the supply times of integrated steel producers, which were normally between four to six weeks, extended to at least six weeks.

Spain

This week in Spain, prices remained horizontal with HRC at 655€ and CRC at 680€. According to information from sources, market offers for rebar are observed at 600-610€ per ton EXW, and manufacturers aim to increase these offers to 620-630€ per ton EXW before the Christmas holiday closure. Sources also noted that demands were weak compared to the previous week.

On the other hand, according to other sources, prices are steadily increasing, allowing customers to make new purchases under these new conditions. SteelRadar's weekly assessment of rebar prices remained at 568.00€ per ton, showing no significant change from the previous week.

Italy

In Italy, attempts by producers to increase prices before the Christmas holiday were unsuccessful, resulting in generally stable rebar prices. Similarly, local rebar prices did not create significant variations and narrowed the price range. As a result, the product, which was in the range of 300-310 EUR/t EXW (base for 12mm, B450C quality was 565-575 EUR/t EXW) last week, showed a change in the range of 300-320 EUR/t EXW (base for 12mm, B450C quality 565-585 EUR/t EXW) this week.

The wire rod market in Italy also kept commercial activities stable, preventing price increases. Wire rod prices remained unchanged despite the efforts of producers to increase prices, with insufficient demand being the main factor. The offer prices for drawing quality wire rod in December were reported as 630.00 EUR/t DAP, and in November, processable prices were observed at 600-610 EUR/t DAP.

In the last two weeks, the plate market in Italy has been experiencing a stagnant period, but suppliers are planning to increase prices soon. European buyers are trying to change their interest in Russian semi-finished products by importing plates from Asia and Brazil. According to the current decision, the European Commission banned the import of Russian-origin plates (CN code 7207 12 10) to the EU as of October 2024.

Poland

This week in Poland, wire rod prices increased due to the weakness of demands, while local rebar prices showed a slight decrease. Due to these conditions, no significant change was observed in the market. According to sources, suppliers in Europe believe that there will be an increase in the near future due to the general upward trend in the long product market, caused by rising production costs and decreasing demand.

SteelRadar predicted that Polish suppliers' wire rod offers would be 660.00 EUR/t CPT. According to information from one source, the offer of the Italian supplier for drawn quality filmashin was at the level of 650.00 EUR/t DAP. The weekly price of locally produced construction steel in Poland was 625.00 EUR per ton on November 3rd and remained at 618.00 EUR level until November 10th.

Germany

While European steel producers aimed for higher prices for steel products, the demand remained low for flat steel derivatives, according to sources. European steel producers for hot-rolled coil products reportedly limited spot trading activities to make better progress in long-term contract negotiations. According to SteelRadar data, hot-rolled coil prices for quality EN 10025 (S235JR) in Germany remained stable at 650.00 EUR/mt on November 10th. According to a source from a long steel producer, price increases are expected in long steel products due to the high production costs. Construction steel prices also remained stable at 620.00 EUR in Germany, following the disproportionate increase in scrap prices. Due to the upward trend in the international market, scrap prices increased slightly.

According to November contracts, scrap prices in Germany were specified as 320-340 EUR/t for E3 delivery, 325-345 EUR/t for E40 delivery, and 320-330 EUR/t for E8 delivery. These prices remained in the same direction throughout the month, showing an increase of up to 5-10 EUR/t. Price increases were achieved due to the improvement in international scrap prices observed since the end of October. Only prices for German E3 did not change in November due to the decrease in demand for the material.

Since the first week of November, German producers have not been able to achieve an increase in rebar prices. Although the local market partly accepted the increase, prices could not be changed due to low demand. Nevertheless, the processable price for German rebar increased from 610/t EUR for 12mm, BST 500S quality (345-365/t EUR delivery, base) a month ago to 610-630/t EUR for 12mm, BST 500S quality (345/t EUR delivery, base) level.

It is aimed to increase rebar prices due to the significant increase in production costs caused by high energy prices. According to the source, steel producers helped achieve the intended increase by raising prices due to production disruptions. The local market stated that European steel producers would maintain the low production levels in November, considering factors such as seasonal factors at the end of the year. According to some sources, flat steel producers may restart production in the coming periods, taking into account the risk of price decline when faced with real demand that has not changed in the market.

United Kingdom

When we look at the wire rod prices in the UK on November 14, 2023, a clear increase is observed. According to the announced data, wire rod prices on November 14, 2023, are traded at the level of 569.00 USD.