Germany
E40 scrap prices in Germany decreased by EUR 35 to EUR 345 at the beginning of October. This decrease is attributed to a persistent lack of demand in the market and weak hopes for a recovery. This decrease in scrap prices continues to squeeze the margins of steel mills, while optimistic prospects for a recovery in demand remain very limited.
The rebar market showed a similar decrease. Starting the week with a decrease of EUR 20, prices were recorded at EUR 615. This decrease is directly linked to weak demand from Germany's construction sector. The sluggish construction sector is weakening steel demand, leading to further price decreases.
HRC prices in Germany also decreased by EUR 10 to EUR 555. This decrease is seen as a reflection of low demand in the construction sector as well as the general market sluggishness. CRC prices, on the other hand, showed a relatively resilient performance, remaining stable at EUR 725. This stable trend is seen as a sign of more stable demand for CRC products.
In the steel plate market, the week started with a decrease of EUR 20 and prices were recorded at EUR 680. However, 14-40 mm steel plate products saw an increase of EUR 5 to a price level of EUR 580. This limited increase indicates that the overall market pressure continues, although demand has stabilized in some segments.
Poland
The Polish steel market showed a more stable performance compared to Germany. Rebar prices were stable at EUR 603, while wire rod prices were unchanged at EUR 600. Although the demand contraction in the Polish market is not as pronounced as in Germany, the general recession is also affecting Poland.
Steel scrap prices have increased on a weekly basis, putting further pressure on producers' margins. The positive impact of stimulus efforts in China is contributing to higher raw material prices in the global steel market. The Chinese government's recent stimulus measures have led to higher iron ore and steel prices. This is putting additional cost pressure on German steel producers in particular.
Although market sources expect the signs of recovery in China to have a positive impact on European markets, the demand situation in Northern Europe remains quite weak in the short term. Buyers in Germany report that there has been a severe stagnation, especially in large tonnage orders, and signs of recovery are still uncertain.
Spain
In Spain, HRC prices increased by EUR 5 to EUR 575 in October. This increase is attributed to the recent general industrial recovery in Europe and increased demand, especially in the construction sector.
However, other segments of the Spanish steel market were more subdued. Rebar prices held steady at EUR 565, while CRC prices remained stable at EUR 680.
Although the steel market in Spain seems to be relatively balanced, with a certain recovery in demand, the stagnation in the construction sector in Italy is directly reflected on steel prices. While the increase in HRC prices in Spain in particular points to a demand-driven upturn, the declines in the CRC and wire rod markets in Italy stand out as the impact of broader economic uncertainty.
Italy
In Italy, the scrap and steel markets have been experiencing more pronounced price decreases. Although E3 scrap prices remained stable at EUR 313, rebar prices started the week with a decrease of EUR 10 to EUR 560. This decrease is attributed to the slowdown in construction projects, especially in Italy, and a decrease in demand amid global economic uncertainties.
In the wire rod market, a EUR 15 decrease pushed prices down to EUR 605. This indicates a slowdown in demand for wire rod, which is said to be driven by the increase in global steel supply. In particular, the significant decrease in steel plate prices (EUR 25) and the decrease in prices down to EUR 625 indicate that the market is under pressure.
In contrast, HRC prices increased by EUR 15, reaching EUR 550. This is attributed to a slight recovery in Italy's industrial production and steel demand in the automotive sector. However, the CRC market saw a decrease of EUR 12, bringing prices down to EUR 668. This is mainly explained by the slowdown in demand for high-quality steel products and the slowdown in the manufacturing sector.
Netherlands
Scrap prices in the Netherlands have shown a remarkable increase in recent weeks, increasing by 21 USD to 360 USD. This increase is considered as an indication of a recovery process in the scrap market in Europe. In particular, increased demand for raw materials in the region and the efforts of some producers to increase their stocks are among the main reasons for this price increase.
Benelux
Scrap prices in the Benelux region have recently increased by 3.5% and EUR10 to EUR298. One of the main reasons for this increase is said to be weak supply and low material flows in the region. Recyclers, especially in Europe, are pushing up their prices due to limited supply. On the demand side, it is noteworthy that Turkish steel producers are cautious about price increases, especially in large export markets such as Türkiye, and low steel sales cannot support these prices.
These price increases in Benelux are affected by the general economic uncertainties in Europe. The economic slowdown in China and the oversupply of steel in global markets are among other factors affecting scrap prices in the region. However, local suppliers continue to target prices above EUR 300. In contrast, Turkish buyers seem to be interested in lower prices, maintaining the supply and demand imbalance in the market.
UK
Wire mesh prices in the UK have shown a notable increase this week, increasing by 6.5 USD to 605.50 USD. This price increase coincides with a period of increasing costs in the UK construction and manufacturing sector in general. In particular, fluctuations in raw material costs across Europe and logistical challenges are among the key factors contributing to this price increase.
Supply constraints from local producers and uncertainties in the global steel market are said to have contributed to the rise in wire mesh prices in the UK. Raw material shortages in the European market and changes in demand in major producing countries such as China are also cited as contributing factors.
Steel prices in the UK are expected to continue to fluctuate in the coming period. Fluctuations in energy prices and disruptions in the global supply chain will continue to put pressure on prices. High demand, especially for construction materials such as steel mesh, will be another important factor triggering price increases.
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