With prices observed to have softened in the past week in the European rebar market, the main reasons for this movement have been low demand (the principal reason), the partial softening in raw material prices and the downtrend in import rebar prices.
On the southern Europe rebar market side, an obvious softening has been seen in the local and export markets of Italy, Spain, Portugal and Greece. Also, a price gap still exists between list prices and deal levels. In recent weeks, the export markets of the countries in question were performing more positively compared to their local markets. However, lately there has been a downward trend in export demand. In general, export offers given from southern Europe have been at €325-340/mt FOB, though it should be considered that price levels may vary from country to country. Meanwhile, purchase activity has registered a slowdown in North Africa, in particular in Algeria.
The expected positive effects of spring and the first days of summer have not yet been seen in the local southern European rebar markets; as a result, end-user demand has still failed to reach the desired levels. Meanwhile, producers in Italy continue to implement varying policies as regards base and extra price levels.
A softening has also been observed in the past week in central and eastern Europe (which had previously been on an uptrend). While producers wished to increase their prices, on the contrary prices began to decline in Bulgaria, Latvia and Germany due to the same reasons as mentioned above.
Producers have also softened their prices in northern Europe, with levels currently at £300/mt ($492/mt) ex-works in the UK. No uptrend in end-user demand has been observed in the local UK market, with the low demand levels being indicated as the main factor behind the softening trend in prices.
In general, the softening price trend that started some weeks ago in southern Europe has also become evident in the past week in central and eastern Europe. While demand remains low overall in Europe, market players are wondering if the summer will finally bring the expected upturn in demand levels.