The European market which has long been calm started to witness some positive developments towards the end of this week.
Producers in the Iberian Peninsula have hiked their prices slightly. Spanish producers have announced their base prices as €240/mt ($354/mt), up €20/mt ($29/mt) compared to the previous base prices. They have also started to give offers at €455/mt ($671/mt) ex-works for B500S 12 mm rebar. In Portugal, 500SD 12 mm rebar has started to be offered at around €440/mt ($649/mt) delivered to warehouse for 60-day deferred payment.
Meanwhile, Italy has been the slowest market in Europe. Certain mills were giving base price offers at €200-210/mt ($295-310/mt) early this week. While there were offers at €395-405/mt ($583-597/mt) ex-works on open-account basis, prices as low as €390/mt ($575/mt) could also be found. There is no development in the Italian local market; however, producers are not very interested in concluding sales at current prices. Rising billet and rebar prices may help Italian mills to hike their prices.
The price of rebar in the UK is slightly higher than £300/mt ($619/mt). The positive developments in the Iberian Peninsula may positively affect the UK market. On the other hand, rebar prices in Germany are at €430/mt ($634/mt) delivered to warehouse. The positive developments in the Iberian Peninsula may positively affect the UK and German markets.
With regard to exports from southern Europe, finding offers at €390-395/mt FOB ($575-583/mt) from Spanish producers was possible. However, in recent weeks Spanish mills have started to target levels above €400/mt FOB ($590/mt). Due to the developments in their local market, Spanish mills may hike their prices further.
Italian mills insist on export offers at €410-415/mt FOB ($605-612/mt) despite the slow local market. On the other hand, some producers are not even interested in giving offers at the indicated levels.
In early November, Greek mills gave offers and concluded sales at €405/mt FOB ($597/mt). However, the mills have recently hiked their offers to €420-425/mt FOB ($620-627/mt).
The European market entered a cloudy period with the end of the second quarter of the year. However, the recent uptrend in the Middle Eastern and Black Sea billet and longs markets seems to have positively affected the European market.