Rebar prices in Europe, which had failed to catch on to the global upward movements during most of the first quarter of 2008, have entered April at a marvelous speed. The overall price in Europe has increased in the last month and a half by over €100/mt ($159/mt).
The producers in the local Italian market have announced base prices this week at €440-450/mt ($701-717/mt). The price level of medium size rebars in this market is at €655-665/mt ($1,043-1,059/mt) ex-works, with two-to-three month open account, excluding VAT. Although the demand and consumption levels in the local Italian market are not so good, local prices are being supported by the strong export and scrap prices. On the export side, the Italian producers are offering at €640-650/mt ($1,019-1,035/mt) FOB. The latest deals concluded to Algeria have been at €630/mt ($1,004/mt) FOB and above. It is heard that there is strong demand from Germany in particular.
Prices in the Spanish market are also increasing rapidly. The base prices in transactions are at €440-450/mt ($701-717/mt). The price level of 12 mm B500S rebar to the local market is at €680-690/mt ($1,083-1,099/mt) ex-works on actual weight basis with 30-day deferred payment, excluding VAT. Although some producers have announced their base prices at €470/mt ($749/mt) due to their full order books, it is heard that no deals have been concluded at this level.
The price range of rebars in the local Greek market is at €680-690/mt ($1,083-1,098/mt) delivered to warehouse on actual weight basis with 90-day deferred payment, excluding VAT. Rebar prices are increasing in Greece in line with the overall situation in Europe; however, the consumption level is not so good.
In line with the upward movements observed in southern Europe, a similar situation is seen in northern Europe. The price level of medium size rebars in the German domestic market has broken through the barrier of €700/mt ($1,115/mt) to reach the range of €710-720/mt ($1,131-1,147/mt) delivered to warehouse on actual weight basis with 90-day deferred payment, excluding VAT. German producers have been paying €400/mt ($637/mt) for shredded scrap and this has been causing the German prices to rise above the average European figures.
The overall European market appears to be taking revenge for its sluggishness in the first quarter, though the general consumption levels across Europe are not registering a similar rate of upward movement to that seen for prices. However, the coming of spring is affecting consumption in a positive manner. Meanwhile, the most important factors behind the rapid price increase in Europe may be enumerated as follows: low stocks, high scrap prices, good export levels and high international rebar prices. On the other hand, the rapidly-rising prices may activate Europe's import market, which has remained closed for a long time now.