The effects of the uncertainty surrounding the European economy and of talk regarding the risk of a depression in the region are being felt also in the southern European rebar markets. In the meantime, the weakening of the euro against the US dollar, with the exchange rate declining to about 1.4 recently, rebar export offers given by the southern European rebar producers have become more competitive. Consequently, inquiries from African and some Middle Eastern markets to European producers have lately increased.
In the Spanish domestic rebar market, demand is still low and local rebar prices in Spain are still at €560-570/mt ($784-798/mt) on actual weight basis, for deliveries to customer. In the meantime, Spanish mills' rebar export offers are still at €515/mt ($7261mt) FOB on actual weight basis. Following the current weakening of the euro against the US dollar, inquiries from African and some Middle Eastern markets to Spanish mills have increased in number.
In Portugal, rebar demand continues to be weak and Spanish mills' rebar offers to Portugal have decreased by €5/mt ($7/mt) on the lower end as compared to last week to €575-585/mt ($805-819/mt) on actual weight basis for deliveries to customer and for 60-day deferred payments.
In Greece, due to the critical effects of negative economic trend, the market mood in the country is pessimistic. In the Greek domestic market, mills' prices for medium size rebar have remained unchanged at €540-580/mt ($756-812/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis. Rebar traders in Greece are not active currently, because of tight credit availability and limited rebar demand from end-users. SteelOrbis has further learned that traders want rebar prices to remain at current levels.
Rebar demand in Bulgaria is currently at good levels in contrast to other markets. Domestic rebar prices in the local Bulgarian market have been revised upwards by BGN 5-15/mt ($4-11/mt), reaching BGN 1,030-1,035/mt ($738-741/mt) CPT on actual weight basis, exclusive of 20 percent VAT. Market players state that prices may see another upward adjustment in line with anticipation of a demand improvement in the coming period.