Spanish rebar prices are expected to drop below €1,000/tonne ($1,066/t) in the coming days. The market is going down, influenced by recent international movement. However, it will take time for direct customers to feel the price adjustment, since distribution centres and traders are taking advantage of the moment to recover their margins, sources tell Kallanish.
“Rebar prices are falling day by day, while distributors maintain stocks at a minimum to avoid risk of loss,” one source comments. “Demand is weak. The situation is similar to when prices were rising. Nobody is buying. The entire chain is waiting to see where the market will touch bottom to make their purchases.”
May, June and July are typically months of very high construction activity in Spain, but the price volatility is impacting the sector and deals remain weak, another market participant says.
“The recovery in demand looks to be postponed for another month,” he continues. “It is difficult to assume that traders can lower prices much, since distributors are taking advantage of the international market adjustment to up margins that they had lost in recent months. Thus, for end customers the situation continues to be difficult to accelerate the recovery of activity.”
Rebar is currently sold domestically in Spain at €800-810/t ($853.5-863.7/) base ex-works. Including €262/t size extras, transaction values are at €1,062-1,072/t ex-works. Some offers have also been heard at €1,000/t delivered for 16mm rebar.
Todor Kirkov Bulgaria