European rebar markets have still been characterized by low demand and softening price levels in the first week of June. Softening in rebar prices is being observed on export side in particular. It is observed that the construction sector in Europe has been failing to reach the desired positive levels after delayed or cancelled projects under the influence of the global crisis. This situation has been continuing to affect the European rebar markets negatively.
Rebar producers in southern Europe have decreased their export price levels last week. However, it is reported that the new and reduced price level has still not been met by acceptance so far. It is observed that Algeria, which is an important rebar buyer market for Spanish, Italian and Greek producers, is not buying for the time being. While the export level from the countries in question are at €320-330/mt FOB, no sales have been heard at even these price levels. Although some rebar producers in the Spanish market have announced increases of €25/mt in their extra prices, it seems that this upward movement will unlikely to be accepted. The latest deals in this market have still been at €370-380/mt delivered to customer. Beside Spain, no demand increase is being observed in Portugal, Greece and.
Meanwhile, rebar producers in most of the eastern and central European regions have softened their price levels furthermore. Beside the low demand, softening in import rebar prices is another important factor for the price decline in these markets. Although the list and deal prices have been showing different levels depending on payment terms and the amount of tonnages, it is observed that the deals are being concluded almost only for small tonnages.
No change has been observed in the last week in the UK rebar producer price levels, whereas the low demand is still being observed in northern Europe in general.
In overall Europe, while the price levels have still softened over the past week, low demand, import raw material and semi finished prices and US dollar-euro exchange rate have still been important factors for rebar price levels.