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Steel Rebar Demand Reaches Pre-Russia-Ukraine War Level in Europe

Steel Rebar Demand Reaches Pre-Russia-Ukraine War Level in Europe

Steel Rebar Demand Reaches Pre-Russia-Ukraine War Level in Europe

  • 08-Jul-2022 10:41 AM
  • Journalist: Peter Schmidt

Germany: The demand outlook for Steel Rebar in the Italian and North European markets is spiraling due to acute price pressures and economic uncertainty. According to market participants, Italian and North European Rebar demand appear normal following a challenging second quarter. Steel Rebar prices skyrocketed following the outbreak of the Ukrainian conflict due to speculation and fear. Then, during the April-June quarter, there was almost no market demand for Rebar prices, as buyers decided to wait and use their stockpiled inventories. Since July, Steel Rebar has noticed a market normalization, with demand returning.

Several mills booked quotations for Steel Rebar that were less than 50% of their typical consumption in July due to slower steel demand expectations, planned maintenance, and higher energy costs during the Russia-Ukraine conflict. Some mills may even avoid the market entirely because they do not require large quantities of material. Construction firms in Germany faced declining orders, paused ongoing activities, and planned project halts. Domestic rebar manufacturers said project customers avoided long-term planning in May and June. They anticipate that many projects will be completed around September/October, followed by a decrease in the number of new projects. However, Italian distributors have been making consecutive purchases since early June.

As per ChemAnalyst, to meet the demand slump, Italian and European steelmakers have significantly reduced production since May; buyers expect this trend to continue into August. The severe price corrections should be over, and the market should become more stable. Furthermore, the fundamentals of European construction remain strong due to the expectation of additional investments as part of the Next Generation EU plan. Steel Rebar prices in Italy had now returned to just below USD 800/MT, exactly where they were before Russia launched its invasion of Ukraine in late February. Furthermore, when prices reached an all-time high in the first quarter, the construction industry struggled to stay afloat.

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