Weak demand for rebar in southern Europe, prices still firm

In this week's Italian domestic rebar market, demand has failed to show a revival and has remained significantly low. In the Italian domestic market, base prices of rebar stand at €310-320/mt ($435-449/mt) ex-works, on actual weight basis. However, market sources have told SteelOrbis that buying activity remains low and that end-users, whose price idea is €20/mt ($28/mt) below this range, are reluctant to buy at this price level.
 
In the meantime, Italian producers are still offering rebar to the export markets at €505-510/mt ($709-716/mt) FOB on actual weight basis. SteelOrbis has been informed that Algerian buyers are not showing much interest in Italian mills' offers for the time being. However, with the weakening of the euro against the Algerian dinar, the number of transactions is forecast to increase in the coming days.
 
SteelOrbis has learned from market sources that rebar demand in the Spanish domestic market is still low and local mills are seeking to maintain their rebar prices. Currently, Spanish mills' rebar base prices are at €285-290/mt ($400-407/mt) ex-works. On the other hand, the rebar export offers of Spanish mills, who are seeking to increase these offers, are standing at €510/mt ($716/mt) FOB on actual weight basis, while the Spanish producers' offers to the Algerian market have moved up slightly to €530-535/mt ($743-750/mt) CFR. In the coming days, offers are expected to be seen in the market above this price range.
 
Demand is currently weak in the Greek domestic rebar market, and actual bookings are aimed at meeting daily spot material needs. SteelOrbis has learned that in the Greek domestic market mills' prices for medium size rebar are still standing at the levels of €530-560/mt ($743-785/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis. In Greece, rebar offers given from Italy stand at €530/mt ($743/mt) CFR on actual weight basis. However, when transportation costs from port to warehouse are added to these offers, they are almost at the same level as domestic offers. Thus, buyers are not showing interest in these offers.
 
This week, there is no activity in the Bulgarian rebar market due to the national holiday in the country, and players are expected to return to the market next week. Last week, rebar demand in Bulgaria had shown some recovery and after the holiday this revival is expected to resume. SteelOrbis has learned that domestic rebar prices in the local Bulgarian market still stand at BGN 960-970/mt ($688-695/mt) CPT on actual weight basis, exclusive of 20 percent VAT. However, it is heard that local mills are preparing for a price hike and rebar prices in Bulgaria are forecast to increase by about BGN 15-20/mt ($11-14/mt) in the coming period.
 
 €1 = $1.403