Last week, both domestic and export rebar prices continued to soften in Europe. Steadily softening scrap prices, lack of demand and competition are the mains reasons for the decline of finished steel prices. In addition, various offer levels have continued to be heard depending on customer, tonnage and region; the official price lists have for a long time now lacked validity.
Rebar prices have continued to deteriorate in the domestic markets of Italy, Spain and Portugal, in line with the abovementioned factors. In Italy, base prices have decreased to the level of €90-100/mt and total prices have declined to €300-320/mt ex-works. On the export side, Italian mills' offers have been hovering at the level of €310-315/mt FOB. Offers have generally continued to be given to Algeria and Greece.
Also in Spain and Portugal, prices have maintained their routine downward trend. In Spain domestic rebar prices have fallen to the level of €330-340/mt delivered to customer, whereas in Portugal rebar prices have decreased to €325/mt delivered to customer. In both countries, end-user demand has been moving on a slack trend, while Spanish mills in particular have continued to issue billet and rebar export offers intensively, at levels of €310/mt FOB for rebar. Producers aiming to sell off their stocks have continued to focus their attention on Africa for rebar exports, while they have continued to give billet offers to Turkey.
As for Greece, mills' offers have maintained their softening trend, decreasing to the level of €340/mt delivered to customer, in order to compete with import rebar offers. Also, end-user demand has been trending at low levels in this market. Buyers have refrained from purchases in spite of the decreased prices. Rebar export offers have continued to be given from Greece to Algeria where competition is being observed, and the levels in question have been standing at €310/mt FOB.
Looking at eastern Europe, it is seen that the situation in this region has continued to get worse. Demand in the region has been quite weak and, even though prices have decreased, they have only remained as offers. The construction sector in eastern Europe has also been very slow. Latvia in particular has continued to give aggressive offers to regions in eastern Europe where a general sluggishness is observed in the construction sector. Latvian mills' export rebar offers to the regions in question have decreased to the level of €285/mt FOB.
Prices have continued to soften in Romania where demand has remained inactive. As local producers' prices currently have the upper hand over import material, it is unlikely that stockists will consider import material when they move to make purchases.
Although days are passing, the outlook remains the same in the European rebar market. Demand coming from Africa has continued to be a source of hope for some countries, while offers given to this region and price levels of the bookings concluded have decreased with every passing week. As mentioned above, the softening seen in scrap prices is the main reason for this decline. Against the background of continuously falling prices, buyers have delayed their purchases as much as possible and certainly prefer to maintain their purchases strictly in line with their needs.
€1 = US$1.30553