Rebar prices have begun to recover in Spain after losing more than €50/tonne ($54.4/t) since May. The rebound is thought to be a measure by mills to bolster the market before their upcoming maintenance stops, amid stagnant international demand and uncertainty in the domestic construction sector, sources tell Kallanish.
“Last week, Megasa raised its price by almost €10-15/t for 16mm rebar. It was understood that the other main market players followed this increase,” a local source explains. “Levels fell more than expected since May and we are now observing a rebound, although not expecting to recover anytime soon the €50/t that was lost,” another market participant explains. “Demand for rebar is sluggish amid the construction sector’s lower production, so the mills’ upcoming maintenance stops could explain the rise in prices.”
The general expectation is that rebar prices will go up slightly further next week. Rebar is currently being sold domestically in Spain at €325-327/t ($353.91-356.03) base. Including €262/t size extras and €23/t loading expenses, the transaction value is at €610-612/t ex-works. Some offers have also been heard at €607/t delivered for 16mm rebar.
On the other hand, the Spanish scrap market remains quiet, with most collectors saying they are expecting the last price drop observed in the international market to soon materialise in the country.
“Last week, some collectors began to offer material, although in small tonnages, at lower prices than the rest of the market players due to a lack of liquidity,” says a trader. “The market expects prices to lose strength soon, matching international levels after Spanish collectors remained on the sidelines during the last downward movement seen in Turkey,” another source observes.
New E8 quality scrap in Spain is offered at €395/t delivered. Type E40 and demolition quality grade E3 are sold at €385/t and €370/t, respectively. Meanwhile, E1 quality stands at €345/t delivered.
Todor Kirkov Bulgaria