European rebar markets have been in an increasing course based on scrap prices in recent weeks. But over the past two weeks, it is seen that new prices have had some difficulties to gain an acceptance on the export side.
Looking at the southern European side, it is heard that the most recent rebar bookings concluded by Spanish mills to North Africa at the level of around €360/mt ($491/mt) FOB. Although mills have an intention to raise this price level for the export market, it seems hard for new prices to be accepted. Despite the low demand in the Spanish domestic rebar market, rebar prices have risen to the level of €400/mt ($545/mt) delivered to customer, due to the influence of the increases seen in scrap prices. Of course, it is also possible to hear various price levels depending on tonnage and customer. The situation is not different in Italy. Although the mainstream prices in Italy were last week in the range of €370-380/mt ($504-518/mt) ex-works, rumors are currently circulating in the Italian market that scrap prices may go up and consequently lead rebar prices to increase in spite of the low demand. On the Greece side, in the mid-week mills have gone for a hike for their rebar prices by €30/mt ($41/mt) and have currently been trying to give offers for export at the level of €380/mt ($518/mt) FOB, while they had offered at €370/mt ($504/mt) FOB before. However, it is heard that these new offers have not found an acceptance yet.
In general, the topic that had a weigh on the southern European rebar market was the new price hikes' having difficulties to gain an acceptance on the demand side, since they were based on scrap prices.
Another price increase news has come from UK on the northern European side. Mills have increased their prices by average £20-25/mt ($30-38/mt) to the levels of £350-360/mt ($532-548/mt) delivered to customer. The main reason behind this increase is the increase seen in the global scrap markets.
In the eastern Europe, it is observed that the activity seen in price levels have also influenced demand levels over the past few weeks. The reason for that is the recommencement of some projects that suspended before in some countries such as Romania and Bulgaria in particular. Meanwhile, increasing trend of scrap and import rebar prices have led eastern European mills to go for a hike in recent weeks.
As for marker players, it is a source of wonder whether these rapid increases seen in recent weeks will continue and also find support from demand.