In these final days of 2008, tightness of end-user demand (due to the global financial crisis), not only in iron and steel but also in other sectors, have been imparting an increasingly pessimistic hue to the thoughts of market players. In addition, the more difficult conditions which have arrived with winter have been raising fears of possible declines in scrap supply and other related problems, and such fears have been helping to push up scrap prices, and thereby rebar prices also, in Europe. Despite the low demand for finished steel, the abovementioned upward movement in scrap prices has been keeping finished steel product prices.
The European rebar market has now entered its Christmas-New Year holiday period and, accordingly, it is currently absent from market activity and is simply awaiting the arrival of 2009. In this market, and in Italy in particular, as we came up to early December scrap prices were hovering at high levels; consequently, rebar producers' base prices went into an upward trend in early December. However, since the higher rebar price levels failed to gain acceptance in the local Italian market and also given that the Turkish mills' rebar offers to this country were at higher levels comparing to the local Italian mills' offers, rebar base prices in Italy which had been hovering in the range of €200-230/mt ($280-322/mt) became focused at around €200/mt. Rebar prices in Italy were at the level of €450-460/mt ($630-644/mt) ex-works in recent weeks; however, these prices have this week dropped back to the levels of €430-440/mt ($602-616/mt) ex-works. Meanwhile, Italy's rebar export offers have this week been at €400/mt ($560/mt) FOB.
Rebar offers and deals from Spain to Algeria observed towards the end of last week were at levels of €390-400/mt ($546-560/mt) FOB Spain, whereas offers have this week been in the range of €400-420/mt ($560-588/mt) FOB. It is heard that Spanish rebar producers have not been offering any price levels below €400/mt ($560/mt) FOB towards the end of this week. It is also heard that Algerian traders have already filled their stocks until late January, and that the Algerian market has slowed down its purchase activity accordingly. Rebar prices in the local Spanish rebar market have been at €430-440/mt ($602-616/mt) delivered to customer.
€1 = US$1.4