The Spanish long steel market has been on a recovery path since May, driven by a rebound in rebar consumption supported by improving construction sector activity, Kallanish hears from market participants.
“Demand from the public sector has shifted from weak to stable in recent weeks. We’re also seeing a noticeable rise in private construction activity,” a source comments. “Distributors report that end customers are purchasing in larger volumes as summer approaches. Overall, market confidence is very optimistic for June and July.”
However, some caution remains. Another market participant warns that the momentum seen in May could slow, as mills have raised their selling prices by approximately €10/tonne, in line with higher scrap costs.
“This price hike is dampening demand just as buyers were gaining confidence after months of uncertainty,” the source adds.
Despite the recent price adjustment, expectations for the near term remain positive, buoyed by seasonal demand and the gradual stabilisation of economic conditions.
The monthly index for Spanish domestic rebar prices in May decreased compared with the previous month, according to data published by the Spanish Chamber of Commerce. The index stood at 192.90, down 0.61% from April. However, it was 11.69% higher year-on-year. The index is based on a value of 100 in 2014.
The 16mm material is offered in Spain at €360-362/t ($403.27-408.95/t) ex-works basis. With size extras and loading costs adding €262/t, transaction values stand at €622-624/t delivered.
Todor Kirkov Bulgaria
