Demand still slow in southern European rebar market

The summer holidays still ongoing in the Spanish market are keeping demand levels weak. The rebar transaction level in the domestic market is at €560-570/mt delivered on actual weight basis. Production capacity usage of Spanish producers is low, and the strong price levels in the domestic market are leading the producers to focus on the domestic market rather than on the export markets. Export offers by Spanish producers have remained unchanged and stand at €510-515/mt FOB levels, on actual weight basis. Offers made to Algeria still stand at €535-540/mt CFR. Algerian buyers continue to make inquiries; however, no deals have so far been concluded. Deals are likely to take off coming towards the end of the Ramadan period, i.e., as of next week.
 
Offers by Spanish producers to Portugal are currently at €580-585/mt delivered to customer, including 60 days, on actual weight basis. With the impact of the summer holidays, rebar price levels in domestic Portugese market are flat, and demand continues to remain weak.
 
In Italy, no increase in activity is expected to be seen at least before next week. In the Italian market, the last rebar price levels prior to the holidays were at €540-550/mt delivered to customer on actual weight basis. Italian producers' last offers made to the export markets were at €510/mt FOB levels.
 
In Bulgaria, rebar producers have revised their rebar prices this week and are offering at BGN 1,010-1,015/mt CPT (€516-520/mt), excluding 20 percent VAT, on actual weight basis. Market players in Bulgaria indicate that demand is positive compared to the same period of previous years, even though it is not at desired levels.
 
€1 = BGN 1.95578