Southern European rebar producers still focus on domestic markets

Wednesday, 15 June 2011 15:17:55 (GMT+3)   |  

In the Italian domestic market, base prices of rebar still stand at €300-310/mt ($429-443/mt) ex-works, on actual weight basis. Last week producers announced an increase of €20/mt ($29/mt) in price extras to €250/mt ($358/mt). Prior to this announcement, some traders, who had already been informed about the producers' move, concluded a number of bookings. However, after the increase in price extras, rebar demand now seems quiet in the Italian domestic market. On the other hand, Italian rolling mills' rebar offers to the export markets still stand at €515/mt ($736/mt) FOB on actual weight basis.
 
Rebar demand in the Spanish domestic market is still low and local mills have maintained their rebar base prices at €300/mt ($429/mt) ex-works. In the meantime, the rebar export offers of Spanish mills have declined slightly to €515-520/mt ($736-744/mt/mt) FOB on actual weight basis, despite mills' efforts to push them up slightly to €520-525/mt ($744-751/mt) FOB.
 
In the Algerian market, where some rebar demand is seen, prices at €535-540/mt ($765-773/mt) CFR have been finding acceptance. Market sources have told SteelOrbis that, despite slack demand in their domestic markets, rolling mills in southern Europe prefer to conclude sales in their local markets due to more advantageous prices, rather than turning to the export markets.
 
In Portugal, not only rebar demand is low, but demand for other long steel products is also weak. Traders' rebar inventories have remained low, due to high prices and lack of expectation for a demand improvement in the coming days. Thus, traders are making purchases only to meet their daily spot needs. Spanish mills' rebar offers to Portugal still stand at €585/mt ($837/mt) on actual weight basis for deliveries to customer and for 60-day deferred payments.
 
SteelOrbis has learned that in the Greek domestic market mills' prices for medium size rebar still stand at €545-575/mt ($780-823/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis. 

Rebar demand in Bulgaria is at good levels and further improvement is expected in the coming days, as construction activity in the country has lately increased. SteelOrbis has learned that domestic rebar prices in the local Bulgarian market stand at BGN 990-1,000/mt ($724-732/mt) CPT on actual weight basis, exclusive of 20 percent VAT.


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