Spanish rebar prices remain unchanged, with most local mills still assessing production levels and demand amid a downturn in the market, Kallanish notes.
Local scrap values remained unchanged at the start of this week and continue to lag in reacting to the price declines observed in other major European markets.
“We are seeing a slowdown in the construction sector ahead of the early general election [in Spain] scheduled for 29 November,” one source comments. “Several major public infrastructure projects are under way, while others already planned will need to be delayed.”
According to a market participant, long steel distributors remain sceptical about sales returning to normal levels by year-end. This is despite a partial recovery in works activity observed at the beginning of the fourth quarter, he adds.
The monthly index for Spanish domestic rebar prices in September decreased slightly compared to the previous month, show data published by the Spanish Chamber of Commerce. The index stood at 243.56, or 0.46% less than in August. However, it was 22.17% higher year-on-year. The index is based on a value of 100 in 2014.
16mm rebar is currently offered in Spain at €488-498/tonne base ($545.5-556.7/t). An additional €262/t for size extras and loading expenses brings transaction values to €750-760/t ex-works.
In the case of scrap, local market prices are seen moving down by €10-20/t in the next few days for the new E8 quality.
“We have been waiting for price reductions in the last week, but everything remains unchanged,” a local merchant says. “We believe price cuts are imminent given the latest downturn in the Turkish market. Higher electricity costs and low demand for new steel are set to cause a sharp fall.”
The week started with new E8 grade scrap and shredded type E40 being offered in Spain at €330/t. Other qualities, E3 and E1, are respectively at €315/t and €280/t delivered.
