Spanish scrap, rebar markets expect September price hike

The Spanish scrap and rebar markets have started the last week of August with sluggish activity. Prices remain unchanged, while demand is practically non-existent during the last days of the country’s summer holiday period, sources tell Kallanish.

“The market has begun very calmly the week, although both scrap collectors and rebar sellers expect prices to start moving,” one source observes. “The recovery in activity expected in September should lead prices up. These have remained flat since July.”

However, the positive perspective on the recovery of the Spanish scrap market is not unanimous. “Domestic prices will follow the logic of the international market, not because an improvement is expected to be confirmed in Spanish demand,” a market participant comments. He confirms that most of the large mills have finished their maintenance periods, but they have no intention of starting September at high production rates.

“Scrap purchases are slightly down compared to last year at this time. Levels for lower grades are expected to rise between €10-20/tonne in the next few days,” a collector says. “However, lower output from steel mills due to disappointing industrial activity and poor performance in the construction sector could undermine the expected recovery.”

New arisings grade E8 scrap is offered at €360/t delivered. Both E40 and demolition-quality grade E3 stand at €345-350/t, while E1 is at €300/t on the same basis.

Meanwhile, rebar suppliers in southern Spain confirm they have registered very low sales in August, with demand mainly for small domestic activities. Since mid-July, they are offering 16mm material at €320-325/t ($346.05-351.46) base. Including €262/t size extras and €23/t loading expenses, transaction values are at €605-610/t ex-works. Some offers have also been heard at €600/t delivered for 16mm rebar.

Todor Kirkov Bulgaria