The Italian rebar producers have this week been pushing towards a base price level of €300/mt ($439/mt) - approx. €495/mt ($724/mt) ex-works, excluding VAT. The rising long product prices in both the overall European and non-European markets favor the efforts of the Italian producers. In the same way, there is an expectation that import billet prices may activate the billet prices in Italy as well. This situation may also activate the rebar prices in the Italian local market.
In the Italian rebar export markets, the Italian mills have been pushing for €500/mt ($731/mt) FOB Italy, following the latest sales concluded at price levels of above €480/mt ($702/mt) FOB Italy. Despite the fact that there are still offers with lower price levels to the Algerian market, the Italian rebar producers may be able to hike their prices following the Ukrainian producers' price increase.
Spanish rebar producers continue to raise their prices rapidly. Some mills have hiked their base prices to a level of €350/mt ($512/mt), up from the base price range of €300-310/mt ($439-453/mt) early this week. The price level of Spanish origin 12 mm B500S rebar in Spain's local market is at €570/mt ($834/mt) ex-works on actual weight, excluding VAT. Looking forward to the coming week, a base price level of €380/mt ($556/mt) is said to be expected in the market.
Rebar prices have been increasing in northern Europe in line with the southern part of the continent. The rebar price level in the German local market is already at above €500/mt ($731/mt) ex-works. On the other hand, some activity has been observed in Poland. Export offers from Germany to Poland were at the level of €530/mt ($775/mt) delivered to Poland at the beginning of the week. The prices in question may increase in the upcoming days.
The European rebar market has made a rapid entry into 2008. Prices have gone up by nearly €100/mt ($146/mt) in a short period of time. It would be difficult to describe end-user rebar demand as being very strong. The main reason behind the recent price increase is the low level of stock in Europe, as well as the rising raw material and long product prices globally.
Along with the wintertime conditions, the fact that there has been reduction in the number of new projects in Italy, Iberia and northern Europe in the short and middle term is having a negative effect on demand levels. However, new developments in the countries which joined the EU in the last few years may positively affect general demand in the overall European market.