Spanish scrap, rebar prices seen falling

Scrap prices in Spain are expected to fall after some volatility was reported in the domestic market before Easter. The correction in international values is pushing domestic prices down, with these expected to remain lower for the rest of April, sources tell Kallanish. Rebar prices are also faltering despite demand from the Spanish construction sector entering high season.

“All scrap grades except the new E8 quality moved up ahead of the holy week, but the general sentiment is that new offers will drop by €10-15/t [$10.94-16.41] after the holidays,” a local source comments.

Another market participant suggests the lack of material availability is still limiting the fall in prices. However, “mills’ increase in production rates after their return from holiday, as well as the upward trend observed in automotive sector activity will keep the new, lower scrap prices stable at least until the end of April,” he adds.

New arisings grade E8 scrap was offered at €440/t delivered in the first full week of April. E40 stood at €420/t, while demolition-quality grade E3 was priced at €415/t, both delivered. E1 quality was at €390/t on the same basis.

On the other hand, Spanish rebar prices have not yet reacted to the last scrap price adjustments. Demand looks to be improving, with most suppliers and distributor centres saying that purchases from the construction sector are returning to normal. Rebar prices are expected to fall under €730/t for 16mm rebar in the next few days.

“The long-awaited recovery of construction activity and investor confidence seems to be a fact, with more stable demand since March and the restart of a large part of construction works that remained halted,” a distributor observes.

Rebar is currently sold domestically in Spain at €455-465/t ($497.77-508.71) base. Including €262/t size extras and €23/t loading expenses, transaction values are at €740-750/t ex-works.

Todor Kirkov Bulgaria