Rebar prices have begun to recover in Spain after losing more than €15/tonne ($16.38/t) at the end of September. The rebound is thought to be a consequence of ArcelorMittal’s long steel price hike across Europe last week. The adjustment, however, has not been applied unanimously in Spain, sources tell Kallanish.
“Some Spanish mills have followed ArcelorMittal’s increase, while others did not. The market seems divided. Traders hope the rise will last longer, so they recover from the losses suffered in recent months, although the general feeling is that high prices will affect demand, which is quite good now,” one seller comments.
According to another market participant, the Spanish market is currently well supplied. “Everyone took advantage of the low material prices in previous weeks, buying excessive volumes,” he explains. Traders confirm the latest purchases by some small distributors exceeded 1,000-2,000 tonnes, while some even ordered 3,000t from steel mills. “The market became tense. So many orders have been placed that the mills cannot keep up with the usual delivery times. They are 2 to 3 weeks behind schedule,” one source observes.
16mm rebar is currently offered in Spain at €333-338/t base. An additional €262/t for size extras and loading expenses sees transaction values at €595-600/t ex-works. Some mills, however, have increased their selling prices to above €615/t.
Todor Kirkov Bulgaria