In the Italian domestic rebar market, demand is still low with the influence of the continuing uncertainty surrounding the European economy, while domestic rebar prices in Italy have remained unchanged at €530-540/mt ($716-729/mt) ex-works on actual weight basis. In the meantime, Italian mills' rebar offers to the export markets have increased by €5/mt ($7/mt) as compared to last week, following transactions made with the support of the weakened euro, reaching €515-520/mt ($695-702/mt) FOB on actual weight basis. Italian mills continue to make sales to some Middle Eastern and African markets, with the euro/dollar exchange rate hitting the 1.35 level. Italian mills' rebar offers to Algeria stand at the price level of €540-545/mt ($740-747/mt) CFR on actual weight basis, with a slight increase as compared to last week. It is reported that some transactions have been concluded at these prices.
In the Spanish domestic rebar market, demand has failed to show any improvement, remaining low. Local rebar prices in Spain have remained unchanged at €560-570/mt ($756-770/mt) on actual weight basis, for deliveries to customer, despite increased foreign demand. In the meantime, Spanish mills' rebar export offers are still at €515-520/mt ($695-702/mt) FOB on actual weight basis. However, higher offers are also heard in the market, due to rebar supplies being on the short side. Spanish rebar suppliers continue their rebar sales to Middle Eastern and West African markets, with the ongoing exchange rate advantage of the weakened euro.
Rebar demand in Greece is significantly low, as Greek buyers are keeping their rebar bookings at a minimum. SteelOrbis has learned that in the Greek domestic market mills' prices for medium size rebar have remained unchanged at €540-580/mt ($729-783/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis.
In Portugal, rebar demand continues to be low and market players state that the market outlook is still uncertain. While Spanish mills' rebar offers to Portugal have remained unchanged at €575-585/mt ($776-790/mt) on actual weight basis for deliveries to customer and for 60-day deferred payments.
Unlike other markets in southern Europe, rebar demand in the Bulgarian domestic market is still at good levels, while domestic rebar prices in the country have seen an upward adjustment as expected, increasing by BGN 30/mt ($21/mt) to BGN 1,060-1,070/mt ($731-738/mt) CPT on actual weight basis, exclusive of 20 percent VAT.
Due to the continuing weakness of the euro against the US dollar, southern European mills' rebar offers are still more competitive than Turkish offers. While Turkish mills continue to sell rebar to their key export markets, since rebar supplies are on the short side in southern Europe, offers from this region are now fewer in number. If the euro continues to remain weak, it is thought that Turkish mills may cut their rebar offers down from the current price range of $715-735/mt FOB on actual weight basis, in order to compete with European offers.