How will rebar buyers react to anticipated price hikes in southern Europe?

Although rebar demand is still sluggish in southern European markets, market sources indicate that prices may be pushed up in the coming days, under the influence of the strengthening of the euro against the US dollar. However, it remains to be seen how buyers will react to such likely rebar price increases.
 
In Italy, activity in the construction industry remains low after the Easter holiday and rebar demand is still sluggish. Currently, Italian mills' rebar export offers stand at €500/mt ($738/mt) FOB on actual weight basis. In the meantime, Italian producers are seeking to raise their prices in line with price hikes made by Turkish mills. Thus, in the Italian domestic market, rebar base prices have increased by €10/mt ($15/mt) to €270-280/mt ($399-414/mt) ex-works, while SteelOrbis has also been informed that some mills have started to give offers above this price level.
 
In the Algerian market, it is observed that rebar demand has remained at good levels. The latest rebar import transactions in the Algerian market were concluded at €520/mt ($767/mt) CFR on actual weight basis. However, rebar import offers given to Algeria are expected to increase to €530/mt ($782/mt) CFR on actual weight basis in the coming days.
 
Spanish rebar producers state that, since the euro/dollar exchange rate has reached 1.48, they are facing difficulties in relation to the price levels accepted in the international markets. In the meantime, although these producers do not desire to push up their prices, they are likely to increase their rebar prices by approximately €10-15/mt ($15-22/mt) in the coming days. For now, Spanish mills' rebar export offers are still standing at €500/mt ($738/mt) FOB on actual weight basis. However, unlike the stable demand from Algeria, domestic demand is on the low side.
 
In the Portuguese rebar market, demand is significantly low. This week, Spanish producers' rebar offers to Portugal are still standing at €535/mt ($790/mt) for deliveries to customer and on actual weight basis. However, it is reported that Portuguese traders find these offers high and, given the still tepid levels of demand, they are having difficulty in accepting this price level.
 
In the Bulgarian domestic market, rebar prices have been adjusted upwards in line with Turkish mills' increased prices, in order to counteract imports. After the price hike, although prices have reached BGN 945-950/mt ($713-717/mt) for deliveries to customer, demand is observed to remain low in the local market for the time being.
 
In the Greek domestic rebar market, uncertainty prevails and demand has not shown any improvement yet. Greek mills' local rebar offers have remained at their previous levels and currently medium size rebar offers are still standing at €530-560/mt ($782-827/mt) on actual weight basis, for deliveries to customer.
 
€1 = $1.48
$1 = BGN 1.325