Steel producers are aiming to raise their ex-works prices by €30/ton ($32) on a monthly basis, citing higher rebar costs, and want to raise scrap prices to the €370-390/ton range. However, local deal values remained at €340-370/ton ex-works, up only €10-20/ton from last month. However, Italian scrap prices rose by EUR18 to EUR383/ton in the week to 3 June.
Sources believe that these price increases are unlikely to be sustainable due to the current weak market conditions and expect prices to fall back to average €320/ton ex-works. Some local producers raised their prices due to low margins and high raw material costs. Moreover, limited consumption and slowdown in activity were reported in May.
Rebar prices in Italy, which hovered between EUR 590-600/ton in May, started the week of 3 June with a €5/ton increase and were revised up to €605/ton. In Spain, on the other hand, prices fell by €20/ton to €580/ton in the same period. This situation is considered as a reflection of the supply-demand imbalances and uncertainties in the European steel market.
Considering the economic conditions and market dynamics, these price fluctuations are expected to continue in the short term. Both producers and buyers need to take strategic steps against these price changes. In particular, steel producers have to reflect cost pressures on prices, while buyers have to develop various strategies to optimise costs.
Sources predict more uncertainty and volatility in the European steel market in the coming period. These uncertainties may increase further due to changes in production costs and fluctuations in global economic conditions. Therefore, it is important for all parties operating in the sector to closely monitor market conditions and take necessary measures.
Comments
No comment yet.