For over a year, the performance of the Italian rebar market has been irresistible. Today, however, this market risks losing the driving force which had raised it to its peak. We’re referring, of course, to Algeria which has lately seen a heavy fall in rebar prices across its national market.
The reasons for the price drop include not only the excess of offers made to Algeria from Italy, but also those coming from countries such as Russia and Ukraine.In November alone, Algeria received 215,000 mt of rebar from abroad – a volume which surpasses by over 60,000 mt the country’s monthly internal demand.
Following the law of supply and demand, in less than 30 days Algerian rebar prices fell by around $70/mt. The trend thus triggered has also stretched its shadow over the Italian market, which can still count however on the proximity of the winter closure of its steel mills. If there are to be problems, they are likely to come to the fore at the start of 2007.
Generating further worries is the presence of 80,000 mt of rebar in the Ukrainian ports which are ready to take the direction of, as it happens, Algeria.