Polish factories are raising prices for valves to cover increased production costs

Polish mills increased prices for rebar, while the price for wire rod remained unchanged in the week to Friday, January 12, sources told Fastmarkets.
According to sources, valve prices in Poland have risen due to higher production costs, including rising raw material prices, coupled with weak demand, which has put pressure on the profitability of Polish factories.

Armature
Polish factories were offering rebar at PLN 2,850-2,900 ($719-732) per ton CPT, which works out to around PLN 2,830-2,870 per ton ex-factory, sources told Fastmarkets.

For comparison, before the Christmas and New Year holidays, offers for reinforcement were in the range of PLN 2820-2840 per ton CPT, which ultimately amounts to about PLN 2800-2810 per ton ex-works.

This is an increase of 30-60 zlotys per ton compared to the end of December.

“The factories are now demanding an additional PLN 50 per tonne,” a consumer source told Fastmarkets.

It was noted that some transactions were concluded at higher prices, but trading volumes were not specified.

The buyer's source estimated the level of the traded market at PLN 2,850 per ton CPT, which amounts to approximately PLN 2,830 per ton ex-works.

According to the manufacturer's source, the current price range for the supply of valves is achievable.

Fastmarkets' weekly assessment of steel reinforcement bars (rebar) on the domestic market excluding delivery to Poland was PLN 2,830-2,870 per tonne on Friday, up PLN 50 per tonne from PLN 2,780-2,820 per tonne on January 5.

Market participants had mixed expectations regarding further developments in rebar prices.

“Many distributors still have cheap shares they bought in the past. If factories don't see enough demand, they may cut prices again. But [this could not happen] before the end of January,” a distributor source told Fastmarkets.

On the other hand, a distributor source said that demand for fittings in Poland has picked up slightly after the holiday lull.

“If Polish factories are persistent enough, the new [higher] prices may eventually be accepted by the market,” they added.

A consumer source believes that the market will accept the new prices, adding that on the secondary market the fittings can be found 20-30 zlotys per ton cheaper, but only some diameters are in stock.

Import offers from Italy were priced at 656-667 euros ($720-732) per ton CPT.

Wire rod
Polish mills were offering wire rod at PLN 3,100-3,300 per ton CPT this week, sources told Fastmarkets, which has remained virtually unchanged since late December.

However, demand was low and no major deals were heard on the market.

Market participants estimated the trading level at PLN 2,900-3,000 per tonne CPT, but bullish sentiment prevailed among Polish refineries, keeping the estimate range stable.

Fastmarkets' weekly estimate for domestically produced steel rod (drawing quality) delivered to Poland was PLN 2,900-3,100 per ton on January 12 and has not changed since December 8.