Last week the main focus of interest in the European rebar market was the softening seen in scrap prices and how long this softening would be likely to last. The decreasing trends seen in scrap and billet prices have this week continued to push down rebar prices. Demand is currently at insufficient levels in Europe's rebar markets where a variety of price levels is heard.
Looking at the southern European market, it is observed that domestic and export offers have softened. The mills in Italy and Spain, where the export markets have been performing slightly better than the domestic markets, have continued to decrease their export offers. Export rebar offers given from Spain have been standing at the level of €340/mt ($434/mt) FOB, while Italian mills' export offers for rebars have been at €350/mt ($446/mt) FOB. It is reported that firms seeking to sell off their stocks have offered rebars at below these levels. As we mentioned above, it is possible to hear a variety of offer levels; meanwhile, demand levels are of greater importance than prices, but no positive development has yet been observed in terms of demand. Portuguese mills have continued to soften their rebar prices, lately lowering them to levels of €365-370/mt ($466-472/mt) delivered to customer. Also, in Greece mills have continued to decrease their rebar offers, just like in the other southern European countries, mostly recently decreasing their offers to the level of €390/mt ($497/mt) delivered to customer. However, it is possible to hear prices below these levels.
As for eastern Europe, the situation is similar. Following Bulgarian mills' last price reduction, import rebar offers seem to be standing at high levels. The exchange rate has continued to pose a problem in the eastern European countries where end-user demand has been on a slack trend; i.e. in Romania, Bulgaria, Poland and Latvia.
Meanwhile, demand has been at low levels in the British domestic rebar market, where prices have decreased to the level of $460/mt for delivery to customer. Meanwhile, export offers have been given from Britain in response to the demand coming from the African market.
Generally, it is expected that the markets will continue in their current situation for another while. When scrap and billet purchases start to be observed, prices will show certain slight increases; however, the markets will probably enter a sluggish period again. Only gradual fluctuations are likely to be seen in the European rebar markets, with sharp rises and falls not expected.