This week Italian producers announced their base prices at €500/mt. The previous effective base prices were at €480/mt. In Italy, rebar of medium thickness stands at the level of €715/mt ex-works, excluding VAT, for 60 to 90-day deferred payments. Demand is not performing well, and traders are expressing surprise at these price increases. However, the uptrend in the scrap prices and in the international longs prices is providing a certain amount of support for the rise in Italy's domestic rebar market.
As regards Spain, this week's base prices were at €470/mt. Currently, B500S rebar of 12 mm thickness stands at €710/mt ex-works, excluding VAT, for 30-day deferred payment. It is expected that the prices will indicate further rises in the upcoming days. The demand in the Spanish market is not robust either; however, the high scrap prices, just as in the Italian market, and the international longs prices are supporting the Spanish domestic market.
In Greece, prices for rebar vary in a range of €720-730/mt delivered to mill, excluding VAT for 90-day deferred payments. The prices started to register an uptrend with the commencement of May. The prevalent expectation is that the prices will move up further.
With regard to the European export market, Italian producers are giving offers at €700/mt FOB for June shipments. These prices seem quite acceptable for North Africa. The offers from the Spanish producers seem to hover close to €700/mt FOB. However, if the expected increase is seen in the Spanish domestic market, the producers may even push levels above €700/mt FOB. The latest sales concluded by the Bulgarian mills were at €685/mt FOB. Following the sales in question, the Bulgarian mills may give offers at higher levels in the upcoming days.
There has been no change in demand in southern Europe. Despite the current spring season, domestic demand is still sluggish. However, the total closure of the import market due to the high levels of Turkish and Egyptian prices, the exports to the African continent, and also the rising scrap prices are all factors helping to trigger the European domestic market.