Spanish rebar prices have been volatile over the last few days. After mills announced a decrease on Friday of almost €40/tonne ($41.59) for 16mm material, levels have rebounded by almost half this week, Kallanish notes.
“The market saw a positive momentum for buying material last week,” one stockist observes. “However, on Monday some mills raised their selling price by almost €20/t and put pressure on selling centres since they bought a lot of material last week,” he comments. “Now, most distributors are evaluating the international market, anticipating a new correction.”
Meanwhile, the construction sector continues to demand steel. “Large companies are trying to build stock to be able to finish the delayed projects. Although costs of construction remain high in Spain, steel purchases continue growing since the economic situation is not promising for the planning of new projects next year,” one source observes.
On Monday, most mills and the steel distribution chain declared themselves against the indefinite strike by one of the national transport unions. The action lasted only one day and has had minimal follow-up. It has not had a major impact on the steel sector, market participants conclude.
Rebar is currently sold domestically in Spain at €405/tonne ($421.75) base. Including €262/t size extras and €21/t loading expenses, transaction values are at €688/t ex-works. Some offers have also been heard at €685/t delivered for 16mm rebar.
Todor Kirkov Bulgaria
