Spanish rebar demand is strong despite prices remaining elevated, Kallanish learns from local market sources. Most distributors started February by stocking up on larger volumes of material, in anticipation of an albeit slight price hike by mills.
Scrap suppliers, however, have doubts over the evolution of the market following the international movements seen in recent weeks.
“Spanish rebar prices have been stable after recovering at the end of January,” one source comments. “Mills are once again trying to up their offers by €5-10/tonne ($5.93-11.87/t) so far this week.”
Most distributors locked in purchases ahead of the expected price increase, securing larger-than-usual tonnages, another market participant says. “The long steel market in Spain is now more predictable, as private construction activity and the progress of major public works projects are moving forward. Therefore, this increase in restocking ensures business stability in the face of possible price volatility in the coming months,” he observes.
Current offers for 16mm rebar in Spain are at €388-393/t ($460.87-466.81) base. Including €262/t size extras and loading expenses, transaction values are at €650-655/t ex-works.
The domestic scrap market situation, meanwhile, appears somewhat unusual at present, a supplier notes. “Most large plants experienced shortages of material, but preferred to limit their purchases. There was a situation of bypassing the increase in international prices in anticipation of them falling, and collectors were unable to take advantage of the situation,” he says.
Another seller confirms the increase in sales expected at the beginning of the month did not materialise. “Even so, scrap collection activity remains strong, and market demand is expected to rebound by the end of February and early March, although without price growth,” he adds.
The second week of February began with auto bundle quality scrap quoted at €355/t delivered in the Spanish market. Both new E8 grade scrap and shredded E40 grade are generally offered at €325/t. Other qualities, E3 and E1, are respectively at €315/t and €275/t delivered.
