In the Italian domestic rebar market, demand is still low, while domestic rebar prices in Italy have seen a downward correction in line with the softening of scrap prices, declining to €520-530/mt ($692-705/mt) ex-works on actual weight basis. Italian mills' rebar offers to the export markets stand at €520/mt ($692/mt) FOB on actual weight basis. However, slightly lower offers are also available in the market. Nevertheless, buyers of Italian rebar currently prefer to monitor the market trends and sudden changes in exchange rates, and so they are delaying their bookings.
In the meantime, rebar offers to the Algerian market are at €540-545/mt ($718-725/mt) CFR, on actual weight basis, while it is expected that Algerian buyers will postpone their purchases for a while, since they have high inventory levels.
In the Spanish domestic rebar market, local rebar prices have remained unchanged amid low demand at €555-565/mt ($738-752/mt) on actual weight basis, for deliveries to customer. In the meantime, Spanish mills' rebar export offers stand at €520-525/mt ($709-716/mt) FOB on actual weight basis. Buyers in Spanish mills' export markets are currently adopting a wait-and-see stance following the weakening of the euro and the subsequent downward price correction of the CIS and Turkish producers, considering that prices may move down further.
In Portugal, rebar demand continues to be weak, while Spanish mills' rebar offers to Portugal have been corrected downwards in line with the softening seen last week in scrap prices, declining to €570-580/mt ($758-771/mt) on actual weight basis for deliveries to customer and for 60-day deferred payments.
Rebar demand in Greece is significantly low due to the debt crisis in the country, though prices have remained unchanged. Accordingly, in the Greek domestic market mills' prices for medium size rebar have been kept stable at €540-580/mt ($718-771/mt) for 30-day deferred payments, delivered to customer, excluding VAT and on actual weight basis.
Unlike other southern European markets, rebar demand in the Bulgarian domestic market is still at good levels with the support of the country's construction output, while domestic rebar prices in the country have seen an upward adjustment, reaching BGN 1,090-1,100/mt ($745-751/mt) CPT on actual weight basis, exclusive of 20 percent VAT.
Although early this week the euro has further weakened against the US dollar with the exchange rate declining to 1.31, rebar offers in the market have approached each other since the CIS and Turkish producers have also reduced their rebar export offers and also due to fluctuations in exchange rates,. Buyers in the Middle East and Africa prefer to monitor market trends and price movements, abstaining from new bookings, since they consider that prices may further soften in line with exchange rate changes and low demand amid uncertainties in the European economy.