Spanish rebar mills retract recent price hike

Friday, 17 February 2012 16:29:36 (GMT+3)   |  
       

This week, Spanish rebar mills rescinded the price hike they had announced in mid-January, since they failed to gain acceptance in their domestic market for their higher prices.
 
As SteelOrbis previously reported, in mid-January Spanish mills had increased their domestic rebar prices by €20/mt ($26/mt) to €585/mt ($772/mt) on actual weight basis, for deliveries to customer.
 
However, in the weeks following the increase, due to the ongoing instability in the European economy and adverse weather conditions, rebar demand in the country remained sluggish and, although mills had not reduced their prices officially, transactions continued to be concluded at pre-increase levels. Nevertheless, buyers' resistance has caused the mills to take a backward step this week and so rebar prices have again regressed to €555-565/mt ($733-746/mt) on actual weight basis, for deliveries to customer.
 
On the other hand, Spanish mills' rebar export offers have been at €500-510/mt ($660-673/mt) FOB this week, though they face difficulties in attracting demand for these offers. In the meantime, Portugal-based Spanish rebar producers' rebar offers to the Portuguese domestic market are at €550/mt ($726/mt) ex-works on actual weight basis, for 60-day deferred payments, while rebar market prices are at the same level in Portugal, but this time on ex-warehouse basis. However, amid weak domestic rebar demand in the country, it is thought that transactions may be concluded at lower price levels.
 
This week, no offers have been heard from Spain to Algeria, as Algerian rebar demand has remained fairly weak.
 
 €1 = $1.32

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