European rebar market is trying to find itself after holidays. The rebar price decline, which was registered in global market in late July, was also observed in the European markets in early August. During that period, there were a lot of material in the local markets and the prices went down due to the fact that Spain and particularly Italy could not conclude any deals to their target export markets in northern Africa and due to the fact that the supply had increased because of the sluggishness in the end-user demand.
In the local Italian rebar market, the prices were at €750-770/mt ex-works excluding VAT in early August, while this week the same materials have been offered at €600/mt on the same terms. However, Italian rebar producers faced with difficulties in determining their price levels in late August/early September. By the next week, these producers will likely to shape their prices for the export and local markets, both of which had been experienced changes and decreases during August.
It is observed that the end user demand level is sluggish at the moment in the Greek domestic rebar market. However, the local producers do not want the price to go down in the local market. For this reason, they are keeping their prices artificially up. This week, the producers' price levels have been at €780-800/mt ex-works excluding VAT. However, these prices have gained no interest. Even though the Italian producers have been experiencing difficulties in determining price levels in their own markets, it is heard that this week the they have given rebar offers to the Greek traders at the price level of €680/mt CFR Greece for September shipments. Also, it is known that the Greek producers have been offering rebar to Romania at the price level of €710-730/mt CFR Romania. Rebar price levels and the end user demand for the material are at higher levels in this country compared to the rest of the European markets.
Slowness in the end user demand, which have been impacting the overall European market since early 2008, is still casting its shadow on Europe these days (early September). However, this time, the main reason for the slowness is not the expensive rebar prices, but the end users, who are delaying their purchases, waiting for a better price, due to the continuously declining prices.
The European producers hope that the rebar prices in Europe will hold on a certain price level in September as so the end users may think that the decline trend has stopped and start to make purchases.
The stock levels of the traders in Europe are at low levels in general. Due to the decreasing prices, traders have released their stocks and reduced the risk. A stable increase in the rebar prices may reassure the traders and push them to increase their stock levels.
€1= US$ 1.423