The Spanish rebar and scrap markets saw stable prices this week, as they continue to lag in reacting to price declines observed in other major European markets, Kallanish notes.
Rebar prices remain unchanged, with most local mills still assessing production levels and demand amid a downturn in the market.
“The slowdown is worrying market participants,” one source comments. “Large steel-consuming sectors, such as construction, are unlikely to recover before the year ends.”
Domestic market analysts note that long steel distributors remain sceptical about sales returning to normal levels by year-end. This is despite a partial recovery in public works activity observed at the beginning of the fourth quarter.
“A situation change could come very soon, as the Spanish government implements urgent measures to support post-recovery efforts following the October floods in many affected regions,” the source observes. “The recovery plan for damaged infrastructure is expected to boost steel demand, which could help stabilise rebar prices and prevent a decline in the coming weeks.”
The monthly index for Spanish domestic rebar prices in November increased slightly compared to that in the previous month, show data published by the Spanish Chamber of Commerce. The index stood at 178.46, or 0.52% more than in October. It was also 7.25% higher year-on-year. The index is based on a value of 100 in 2014.
16mm rebar is currently offered in Spain at €333-338/tonne base ($350.8-356.1/t). An additional €262/t for size extras and loading expenses sees transaction values at €595-600/t ex-works. Some mills, however, are selling material at above €605/t.
In scrap’s case, levels are seen moving down by €10-20/t in the next few days for the new E8 quality.
“We have been waiting for weeks for price reductions, but everything remains unchanged,” a local merchant says. “While Megasa has lowered prices by €10, Celsa and Arcelor are still holding firm. However, we believe price cuts are imminent given the latest downturn in the Turkish market.”
The week started with new E8 grade scrap offered in Spain at €360/t ($379.3/t) delivered. Type E40 and demolition grade E3 are currently at €350/t and €335-340/t respectively. Meanwhile, E1 quality is sold at €310-315/t delivered.
Todor Kirkov Bulgaria
