The European market seems to have taken cue from the happenings in the global long product prices with unabated recession in prices.
It''s reported that merchant bars prices have gone down to EUR 210 per tonne base which is corresponding to about EUR 520 per tonne to EUR 530 per tonne effective.
Beams are also progressively loosing ground with prices declining to EUR 550 per tonne to EUR 560 per tonne DDP in Italy and EUR 540 per tonne to EUR 550 per tonne DDU in Germany. Export prices to North Africa and East Europe (Romania and Bulgaria) are in the range of EUR 510 per tonne to EUR 540 CFR FO.
F.lli Stefana a major beam producer in Italy is likely to resume production after a 2 months of shutdown thereby ameliorating the supply leading to further meltdown.
Some other mills viz., Stahl Gerlafinger in Switzerland following re organization will go upstream with a capacity of 700,000 tonnes per annum of merchant bars and reinforcing bars along with Beltrame. In view of the small size of Swiss market bulk of the production will be diverted to neighboring countries viz., Germany, France and North Italy crippling the prices further.