Spanish rebar prices have fallen €10-15/tonne ($12-18) since the beginning of September, market sources tell Kallanish. Activity has not recovered as expected following the summer holiday and demand for long steel in Spain remains volatile.
“We expected more purchases in early September, based on the increase in pre-bookings in the last few weeks before the holiday market shutdown. However, sales are a little slow for the season,” says one seller. “Even with lower prices, demand remains subdued.”
Traders confirm mills in Spain have been under pressure to lower their prices, mainly due to increased supply and strong competition from non-EU imports.
“Most suppliers to the construction sector are seeing stable orders. Market sentiment is positive from the public works side, while supplies to private construction are volatile, although activity has picked up compared to the July-August period,” says a representative of a local construction company.
According to Spanish Chamber of Commerce data, the monthly index for Spanish domestic rebar prices (B-500 SD 12 meter/12mm) increased for an eighth consecutive month in August. The index stood at 198.65, up 0.3% over July. It was also 9.3% higher year-on-year. The index is based on a value of 100 in 2014.
Current offers for 16mm rebar in Spain are at €358-368/t base. Including €262/t size extras and loading expenses, transaction values are at €620-630/t ex-works.
Todor Kirkov Bulgaria
