The downtrend in the European rebar markets has been continuing also this week. Banks in Europe, the second most affected region after the USA by the current financial crisis, have not been showing flexibility to steel market players as regards loan repayments. Thus, players in the steel market, which is in general characterized by large turnovers, are having to face increasing difficulties.
Rebar base prices have this week been at €180-200/mt in Italy. While rebar prices in this country's local market have this week been at €415/mt, levels €30-40/mt higher have been observed in purchases with small tonnages. The issue of tonnage quantity has been playing a significant role in shaping price levels not only in Italy but in the markets in general. Meanwhile, the Italian producers have been offering rebars to Algeria, Slovenia, Czech Republic, Romania and Greece at the price level of €400/mt FOB.
Rebar prices have this week been at the price range of €400-410/mt in the local Spanish market. On the other hand, Spanish producers have this week offered rebars to the export market at levels of €385-400/mt FOB. It is known that end-user demand is more sluggish in Spain compared to other European markets.
As for the Bulgarian market, it has been showing a different picture from the general ‘continuing downtrend' situation of other markets thanks to the more constant approach of its producers and traders. The local prices here had been in the range of $700-720/mt ex-works for a whole three weeks. However, these price levels have this week decreased to $620-640/mt. The end-user demand in Bulgaria has also decreased compared to past weeks.
€1 = US$1.345