Spanish rebar prices have risen since mid-July, market sources tell Kallanish.
Traders confirm that rebar mills in Spain increased their prices, driven by the start of scheduled maintenance periods. The rise is slightly above other European markets, taking advantage of the rebound in demand from the construction sector.
“Longs product output is expected to drop in the coming weeks, and producers have raised prices ahead of their planned shutdowns,” says one seller. “Even with high prices, demand remains strong.”
Market sentiment is positive heading into the summer, supported by the recovery of construction activity.
“Activity has picked up in June and July, mainly boosted by public and residential sector works,” a representative from a local construction firm notes. “We’re in a period of strong activity, with more building permits being granted. Private construction projects are also contributing to the sector’s positive momentum.”
Another participant points out that the local market has become more predictable and stable, although a slight price adjustment by the end of this month, of €5-10/tonne ($5.87-11.75/t), would be no surprise.
According to Spanish Chamber of Commerce data, the monthly index for Spanish domestic rebar prices (B-500 SD 12 meter/12mm) increased for a seventh consecutive month in July. The index stood at 198.08, up 1.23% over June. It was also 13% higher year-on-year. The index is based on a value of 100 in 2014.
Current offers for 16mm rebar in Spain are at €373-378/t base. Including €262/t size extras and loading expenses, transaction values are at €635-640/t ex-works.
Todor Kirkov Bulgaria
