Steel Rebar Prices Continue to Dip in European Market Amid Sluggish Construction Activity
- 25-Oct-2023 5:22 PM
- Journalist: Nicholas Seifield
In the third week of October, the price of Steel Rebar remains on a lower edge in the European spot market as the demand from the downstream construction and infrastructure industries shifts southwards. A slower pace faced in the downstream construction industries provoked traders to lower their buying rates amidst the forthcoming winter season, further slowing the infrastructural projects. Despite that, the major market participants across European nations have an optimistic approach toward the future market trend for Steel Rebar as parliamentary elections in Poland conclude.
The price decline for Steel Rebar was backed by the lack of construction activity across the Euro-zone nations. The domestic traders and buyers reduced the placement of orders as the inventory level was already on a higher edge. No restocking was observed as the manufacturing activity declined across Europe. The upcoming winter season is imposing a threat to the Steel Rebar market trend as construction activity will further lower. A hike in energy prices is also predicted for the upcoming winter, as key European countries like Hungary plan to buy more Russian gas this season, despite mounting criticism in the West that the deal is financing the war in Ukraine. The ongoing difficulty in the Steel Rebar market due to the rising input cost has forced the local mills to lower their production rate as the supply level hikes in the domestic warehouses amidst slow demand from the downstream construction sector. Market players already have a sufficient amount of Steel Rebar supply and have slowed down their purchasing activity as the infrastructural development slows down.
On the other hand, according to several market players, the forthcoming month is expected to have significant growth in the Steel Rebar market as there is a hope of growth after the Polish parliamentary election concludes. The market players in the European region have anticipated growth in Steel Rebar prices after the country’s parliamentary elections and hoped that the new pro-Europe ruling majority would give boosts to more infrastructure projects. This will give a boost to many infrastructure projects in the local and overseas European region. This will likely uplift the demand for Steel Rebar in the European spot market in the upcoming months.
According to ChemAnalyst, the price of Steel Rebar is anticipated to remain stable in the European spot market as the upcoming winter season will further slow down its pace. Meanwhile, a few market participants anticipate a rise in demand as the new Polish government could increase the number of new infrastructural projects across the European spot market.