Southern European rebar mills increase export offers

Last week, southern European rebar producers concluded some rebar transactions to the Algerian market, where buyers have restarted rebar bookings after a long absence. The ongoing political turmoil in North African countries has continued to impact Turkish rebar producers and also causes the continuation of market uncertainty in southern Europe, since North Africa is one of the key export markets of long steel producers in the region.
 
The latest rebar transaction price to Algeria, where rebar inventories had been dropping for a long time and where the political atmosphere has started to calm down, was at €515-520/mt ($697-711/mt) CFR.
 
Last week, Italian mills' rebar export offers were generally standing at €490-495/mt ($670-677/mt) FOB. However, following the conclusion of some rebar transactions to Algeria last week, offers below €500/mt ($684/mt) have disappeared and rebar export offers of some Italian mills have reached €510/mt ($697/mt) this week. Anticipating that scrap prices will increase in March, Italian rebar producers have not been giving low offers this week.
 
On the other hand, after offering rebar to the export markets at €485-495/mt ($663-677/mt) FOB last week, some Spanish mills have increased their export prices this week to €510/mt ($697/mt), after concluding some rebar transactions to the Algerian market. While buyers in European rebar producers' export markets are expecting prices to increase for some time, the political climate in the Middle East and North Africa causes these buyers to maintain their wait-and-see stance.
 
Last week, Greek rebar mills' export offers were standing at €510/mt ($697/mt) FOB. Meanwhile, domestic rebar prices in Greece stand at €600-630/mt ($820-861/mt) for deliveries to customer. Nevertheless, producers' rebar prices for local traders may drop to €570/mt ($779/mt) depending on the order volume.
 
€1 = $1.367