European long steel makers who produce via electric-arc furnaces (EAF) have expressed growing concerns over rising energy costs, which could worsen ahead of higher demand in the winter, sources told Fastmarkets.
One EAF mill source in Southern Europe said that on average, energy accounts for 15% of steel production costs.
"The latest energy price rises will add about ?,?40-50 ($46.8-58.6) per tonne of steel in additional costs," another mill source said.
"In Southern Europe, electricity prices jumped by 350% in September," a third mill said.
Consequently, producers in Europe have been hoping to raise prices in October on higher production costs, with some even considering production cuts and stoppages in the near term, "to balance the market," another mill source said.
However, given the downbeat mood in the steel rebar and wire rod markets in Europe recently, and considerably cheaper imports, the buyers did not see the long steel price increase to be a realistic scenario in the near term.
Fastmarkets' weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Southern Europe averaged ?,?766.25 per tonne in September,...