A downward trend has this week again dominated the overall European rebar markets. However, although prices have moving down and no demand increase on the end-user side has been observed, producers have been able to conclude exports in the international markets. The lower levels of export offers of European rebar producers as compared to their offers in their local markets have been eye-catching. The producers' strategy of keeping up rebar price levels in their local markets can be considered as the main reason for the abovementioned difference in offer price levels. In spite of the low price levels, local traders and end-users have this week kept away from import activity and have avoided buying particularly large tonnages.
A variety of price levels has been observed in the local Italian rebar market this week. While the base prices for rebar in Italy stand at €385/mt ($563/mt), the local price of medium size rebar in this market is currently at €600/mt ($878/mt) ex-works on actual weight and open account basis. Discounts of up to €50/mt for purchases of large tonnages are being observed in this market, while it is reported that price levels are reaching above €600/mt for small tonnages. The Italian producers have offered rebars to Romania and Greece in a price range of €520-530/mt ($761-776/mt) CFR. However, wishing to keep stocks at minimum levels, traders have been abstaining from buying activities.
Meanwhile, end-user demand is currently low in the local Romanian rebar market. On the other hand, it is reported that the Romanian mills are offering rebars to their local market at the price level of €680/mt ($995/mt) ex-works, excluding VAT, despite the low priced offers from Italy.
Also this week, sluggishness is still seen in end-user demand in the rebar market in Greece. Local traders and producers in this country (just like their counterparts in Italy and Romania) have been keeping their prices at high levels in the local market, in expectation that the market may gain momentum. However, the rebar prices in the Greek domestic market have shown a decrease of approximately €70/mt over the last two weeks.
In general, no signs of a recovery in end-user demand are being observed in the European rebar market. It seems that, as a result of the producers' production cuts or slowdowns in August, supply levels in the local market have declined slightly. However, producers' stocks are too high to be ignored.