Spain’s rebar market shows good momentum before shutdowns

Spanish rebar prices have moved up after a month of stability. The increase comes ahead of planned stoppages at large manufacturers, Kallanish learns from market sources.

“Local demand is in a good momentum, supported by private projects after a quiet few months. Major public infrastructure works have also been unblocked and July looks set to be one of the best months so far this year for long steel sales,” one stockist says.

According to another source, the latest price increase of €15-20/tonne ($16.3-21.7) has been driven by the absence from the market of Spanish manufacturers in the coming weeks. “Large local mills are closing deals at higher levels ahead of their annual stoppages in August. The new levels could last until the end of the summer,” a seller comments.

“Steel mills’ demand forecasts for the summer have been very tight due to market uncertainty. Producers have carried out only small stocking ahead of the August closures and, if demand continues at this rate, there may be material shortages in some regions, even though it is a holiday period,” the source adds.

The monthly index for Spanish domestic rebar prices in July rose by 1.65% over the previous month, according to data published by the Spanish Chamber of Commerce. The index is almost 7% higher year-on-year and stood at 175.29 in July. It is based on a value of 100 in 2014.

16mm rebar is currently being offered in Spain at €368-373/t ($400-405/t) base. Including €262/t size extras and loading expenses, transaction values are at €630-635/t ex-works.

Todor Kirkov Bulgaria