No change has been observed in the European rebar markets in the past week. As the prices maintained their downtrend, a shortage of demand was also in evidence. In the week in question, as all market players wondered how long more the softening of scrap prices would continue, rebar prices still showed variation depending on tonnage and customers.
Turning to southern Europe, the Italian and Spanish rebar export offers have maintained their softening trend in the past week. Italian export offers were at €330-340/mt FOB. The Italian producers continued their sales activity to Africa; meanwhile, they softened the price levels of their offers to Greece. Rebar prices also declined in the Italian domestic market, under the influence of scrap and of low demand, to levels of $340-350/mt ex-works depending on the regions. Demand is still a sore topic in the Italian domestic market. Thus, buyers, thinking that the decline trend will likely continue, are not purchasing material for the time being.
Demand was also still at low levels in the Spanish domestic market, whereas the rebar price level in this market in the last week was at €360/mt delivered to customer. Various price levels were mentioned on the export markets' side, with offers continuing to vary depending on tonnage and the targeted market.
Meanwhile, prices softened in the Portuguese domestic rebar market in the last week to the level of €360/mt delivered to customer. Thus, the likelihood of customers performing imports, if indeed they had an interest in buying, has decreased. It is also expected in Portugal that rebar prices in this market will likely maintain their softening trend.
Looking at Greece, no change is observed in this market. Competition between producers and traders in this country is still seen. Due to the continuously falling import rebar prices, producers in this country have continued to reduce their own price levels. Also, end-user demand in the country remained weak.
In eastern Europe, it is observed that producer prices in Bulgaria did not undergo any change in the last week. Turkish offers to this country were in the range of $450-460/mt CFR. Producers in Romania reduced their price levels to $470-475/mt ex-works. Due to the hard times experienced by the construction sector in eastern Europe, end-user demand in the region was still at low levels.
In general, European market players agree that the softening trend in rebar will continue. Thus, buyers have continued to delay their purchase activities. Also, considering the general economic picture, a lack of clarity was still observed in the European rebar markets last week. Everyone is wondering to what degree the measures and economic packages announced by the European countries will succeed in making a positive impact on the current sluggishness in the markets.
€1= US$ 1.29289