Spanish scrap and rebar markets have seen prices recover, with large mills increasing raw material purchasing prices for all grades while raising their long steel offers, market sources tell Kallanish.
“Large mills returned from holidays by increasing their scrap purchasing prices by almost €20/tonne,” one trader says. “Demand is picking up and most suppliers and distribution centres believe collectors’ activity will improve notably in the last few weeks of this month, supported by general higher production activity,” a source observes. The general expectation is that scrap prices will be stable through most of January following the recent hike in the international market.
After two upward corrections last week, new arisings grade E8 scrap is now offered in Spain at €420/tonne ($455.73/t). E40 quality stands at €390/t and demolition grade E3 is priced at €375/t, both delivered. E1 quality is at €325/t on the same basis.
Spanish rebar prices also started to recover last week. Since the beginning of January, 16mm material increased by almost €20/t, supported by the return of construction activity in the country.
The sector began progressively demanding the usual volumes of rebar for this period of the year, a market participant observes. “The construction companies, in general, assumed that the problem of the cost of energy will be a factor in the medium term. Faced with the alternative of getting into even more debt, they began to unblock their investments,” a source comments.
Rebar is currently sold domestically in Spain at €460/t ($498.92) base. Including €262/t size extras and €23/t loading expenses, transaction values are at €745/t ex-works.
Some long steel traders anticipate a new increase in rebar prices in the coming days.
Todor Kirkov Bulgaria