Spanish rebar prices rose last week. The domestic market was quick to react to increased offers of long products, after most major mills declared they were producing at record energy costs, Kallanish notes. The increase has serious repercussions on construction sector activity, market participants observe.
The market has seen a price increase of around €180/tonne ($180) for 16mm diameter rebar in the last two weeks, one trader says. “The situation is unstable and most of the construction companies cannot take on such high prices of long steel to carry on their works,” one source comments.
Another Spanish market participant confirms the market could soon stall assuming a further increase in rebar prices.
“The situation is becoming unsustainable for medium and small supplies. The steel sector is pushed to adjust its production levels after returning from maintenance shutdowns due to the costlier energy amid a very high inflationary environment,” a stockist explains. “Demand remains weak. Nobody is buying. The entire chain is waiting to see where the market will go to make their purchases.”
Rebar is currently sold domestically in Spain at €700/t base. Including €262/t size extras, transaction values are at €962/t ex-works. Some offers have also been heard at €1,000/t delivered for 16mm rebar.
Todor Kirkov Bulgaria
