Local rebar demand in the southern European markets has remained significantly depressed this week due to ongoing economic uncertainties, while the rebar demand coming from export markets, with the exception of Algeria, has decreased following the recent recovery of the euro against the US dollar.
Lately, domestic rebar prices in the Spanish market have been standing at €550-560/mt ($765-778/mt) for deliveries to customer, on actual weight basis. No improvement in rebar demand has been witnessed in Spain this week, with market activity remaining sluggish. In the meantime, although Spanish mills' rebar export offers have declined to €505-515/mt FOB ($702-716/mt) this week, softening by €5-10/mt ($7-14/mt), buyers in Spanish producers' export markets believe that prices may further decrease in the coming period.
This week, some rebar transactions to Algeria have been concluded at an average price level of €505/mt ($702/mt) FOB, for shipments in late November. Since Algerian buyers' recent rebar purchases from both Spanish and Italian producers to replenish their already low inventory levels will provide some relief for Algerian buyers' stocks, it is thought that new purchases from Algeria in the short term are unlikely. In the meantime, the latest rebar offers to Algeria stand at €535/mt ($744/mt) CFR.
Spanish mills' rebar offers to Portugal have remained stable in the past week, still standing at €565-575/mt ($785-799/mt) on actual weight basis for deliveries to customer and for 60-day deferred payments. However, due to price declines in the international rebar markets, Portuguese buyers are currently delaying their purchases.
Rebar demand in Greece is extremely quiet this week due to the strikes in the country, though prices have remained unchanged since steel producers have already reduced their capacity usage in line with slack demand. Accordingly, in the Greek domestic market, mills' prices for medium size rebar have been kept stable at €540-580/mt ($751-806/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis. The market mood in Greece is pessimistic because of the debt crisis in the country, and this further pushes down rebar demand.
Rebar demand in the Bulgarian domestic market is weak, pushing down domestic rebar prices in the country to BGN 1,050-1,060/mt ($745-752/mt) CPT on actual weight basis, exclusive of 20 percent VAT. Buyers are delaying their purchases, waiting for prices to reach the bottom, and market players state that prices may decrease further in the current week.
€1 = $1.39