In this week's southern European rebar market, also with the influence of the uncertainty in the European economy, demand has remained significantly low. However, inversely correlated to the weakening of the euro against the US dollar, the number of inquiries that southern European rebar mills receive and the total outgoing transaction volume has increased. While market players state that inquiries are still numerous, the shortages in rebar supplies indicate a possible upward correction in rebar prices. In the meantime, the future trends in the euro/dollar exchange rate are expected to determine the shaping of new price levels.
In the Italian domestic rebar market, demand is still low while domestic rebar prices in Italy have remained unchanged at €530-540/mt ($726-740/mt) ex-works on actual weight basis. Italian mills' rebar offers to the export markets are still at €510-515/mt ($699-706/mt) FOB on actual weight basis. SteelOrbis has learned from market sources that, following latest rebar transactions with the support of the weakened euro, Italian rebar export offers may see an upward update in the coming days, also with the influence of narrow supply. Algerian buyers have reportedly concluded some rebar bookings from Italy at the price level of €535-540/mt ($733-740/mt) CFR on actual weight basis.
In the Spanish domestic rebar market, demand is still low and local rebar prices in Spain have remained unchanged at €560-570/mt ($767-781/mt) on actual weight basis, for deliveries to customer, despite increased foreign demand. In the meantime, Spanish mills' rebar export offers are still at €515/mt ($706/mt) FOB on actual weight basis. However, following the latest rebar transactions, market players state that prices may gain some upward momentum in the coming period. In line with the current weakening of the euro, Spanish mills have recently concluded some rebar transactions to African and some Middle Eastern markets.
In Portugal rebar demand continues to be weak , while Spanish mills' rebar offers to Portugal have remained unchanged at €575-585/mt ($788-802/mt) on actual weight basis for deliveries to customer and for 60-day deferred payments.
The current financial depression in Greece has been hitting rebar demand in the country. Greek buyers are keeping their rebar bookings to a minimum to avoid risks. Market sources state that it will take some time for rebar demand in Greece to recover. In the Greek domestic market mills' prices for medium size rebar have remained unchanged at €540-580/mt ($740-795/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis.
Rebar demand in the Bulgarian domestic market is still at good levels while domestic rebar prices in the country have remained unchanged at BGN 1,030-1,040/mt ($722-759/mt) CPT on actual weight basis, exclusive of 20 percent VAT. Market players state that rebar prices in Bulgaria may see an upward adjustment in the coming days with the influence of the recent strengthening of the US dollar against the Bulgarian lev.