Spanish rebar prices rebound slightly, demand remains sluggish

The Spanish rebar market has seen a price recovery, although selling values remain weaker than those observed in the last week of October. Demand for long products continues to stagnate and construction activity is unlikely to rebound before the end of the year, Kallanish understands.

“Demand growth at the beginning of November did not materialise in the way that was expected,” a market participant comments. “The steel consumption chain misinterpreted the movement observed in private construction. Activity increased mainly due to the need to avoid payments for delays amid more expensive materials, rather than due to stable demand.”

“Spanish producers are not expected to increase production or shipments before the newly elected government announces its priorities,” a local trader observes. “Meanwhile, the construction sector in Spain believes it will soon be able to recover its normal activity with the release of public investment in large infrastructure, although the long process of government formation following the general elections in July has impacted the industry.”

Rebar suppliers say they are offering 16mm material at €327-337/tonne base. Including €262/t size extras and €23/t loading expenses, transaction values are at €612-622/t ($668-679) ex-works. Some offers have also been heard at €625/t delivered for 16mm rebar. Despite the recent price rebound, this level remains almost €25/t lower compared to the end of October.

Meanwhile, the price of 6mm mesh with 150x150mm dimensions stands at €171/square meter delivered, down €8 on-month. The other largely sold quality, 8mm, is offered at €302/m2 on the same basis, a decline of almost €6/t compared to the third week of last month.

The monthly index for Spanish domestic rebar prices (B-500 SD 12 meter/12mm) increased slightly in November compared to that in the previous month, according to data published by the Spanish Chamber of Commerce. The index stood at 166.40, up 0.96% over October. However, it was 14.37% weaker year-on-year. The index is based on a value of 100 in 2014.

Todor Kirkov Bulgaria