Spanish rebar market weakens on slow demand

Spanish rebar prices have fallen and levels are not seen improving until the beginning of June, market sources tell Kallanish. Higher offers tabled by large Turkish mills two weeks ago did not last and had no impact in Spain, as was expected.

“It is difficult to predict the market at the moment,” a local merchant says. “Upward adjustments seen in the Turkish rebar market did not have an effect on Spanish prices. On the contrary, slowing demand mainly in the Spanish construction sector pushed levels to move down further after Turkey’s presidential elections on 14 May, and market uncertainty prevails ahead of the run-off on 28 May.”

Spanish prices have declined by more than €45/tonne ($48.63-54.04) since the beginning of May and offers are seen remaining relatively stable at current levels.

“Large mills are saying demand from the construction sector has slightly fallen during recent weeks, as the expected rebound of activity after the costlier energy period did not materialise,” the source comments. Recent international scrap and raw materials developments have also affected the Spanish rebar market, he observes.

“Spanish producers are still monitoring the direction of Turkish rebar, although the country is not estimated to grow production and shipments before the presidential election run-off on 28 May,” a local merchant explains. “Meanwhile, the construction sector in Spain believes it can recover its activity with the release of public investment in large infrastructure after the local government elections [on 28 May].”

Rebar is currently being sold domestically in Spain at €320/t ($345.77) base. Including €262/t size extras and €23/t loading expenses, the transaction value is at €605/t ex-works. Some offers have also been heard at €600/t delivered for 16mm rebar.

Todor Kirkov Bulgaria