After undergoing a steep decline of about 45-50 percent from their peak prices last year, in the last month,
Peru's domestic
longs prices, in the last month, have started stabilizing.
As with the rest of Latin America and the world,
Peru's sharp drop in steel
longs prices was caused by the fall in the prices of raw materials, the drop in steel demand and the economic crisis. Although
Peru’s economy has not entered a recession, and on the contrary, it is still expanding at about two to three percent, domestic mills were forced to drop their prices and reduce their output in face of the threat of lower-priced imports. However, market players now believe the domestic
longs market has hit bottom and will start recuperating in the second half of 2009.
Peru’s domestic
rebar offers seem to have stopped dropping as the last widespread price decline occurred at the beginning of June. Since then, prices have stabilized.
Rebar offers in the Peruvian domestic market now range from about US$600-$800/mt, delivered.