The Spanish rebar market closed November with prices unchanged, with most sellers and distributors expecting mills to hike values for the next purchasing round.
“Prices have been stable since the end of September. However, values should move up in the next few days,” a market source tells Kallanish. “Some producers are already showing signs that current high production costs are reducing their margins, making price increases inevitable.”
Apart from ArcelorMittal, which appears to be making no exceptions despite market uncertainty, some long product producers in Spain seem to be more flexible in offering discounts for new contracts.
“The price increase comes at a time when construction activity is on the rise. Distribution centres are faced with the dilemma of how much material to stock up on, as demand is high,” says one seller. “Prices are not expected to fall. We are facing uncertainty due to the new market regulations [CBAM], which suggest that high levels will continue for some time.”
Based on the increase in pre-bookings in recent weeks, traders confirm they expect purchases to remain stable until mid-December and before the Christmas market closes, even with higher prices.
According to Spanish Chamber of Commerce data, the monthly index for Spanish domestic rebar prices (B-500 SD 12 metre/12mm) increased for a tenth consecutive month in November. The index stood at 201.26, up 0.5% over October. It was also 12.77% higher year-on-year. The index is based on a value of 100 in 2014.
Current offers for 16mm rebar in Spain are at €368-373/t ($426-432) base. Including €262/t size extras and loading expenses, transaction values are at €630-635/t ex-works.
Todor Kirkov Bulgaria
