South European rebar exporters have benefitted during the last two weeks because of issues at some of the main Algerian rebar mills, Kallanish learns from sources.
At the end of April, the Tosyali Algerie mill was halted for several days due to industrial action by workers. While production has now restarted according to reports, a trader with knowledge of the situation comments that the situation there remains tense, as Algerian workers continue to demonstrate against the Turkish management.
Similarly, the state-owned El Hadjar integrated complex suffered a series of stoppages at the end of April, due to iron ore-related supply issues from local Algerian mines.
As a result, a few cargoes of rebar have been booked by Algerian importers from South European mills during recent weeks, sources say. New cargoes are also being discussed by traders. Mills in Italy and Spain are reported to be offering at some €470/tonne ($526/t) fob South Europe, slightly above the levels currently being achieved in the domestic southern European markets. Nevertheless, Algerian rebar buyers are bidding at levels of €485/t cfr Algeria and below, meaning sales are expected to be concluded at somewhat below the mills’ expectations.
“I think the latest recovery in exported volumes is supporting the activity of the longs mills in Southern Europe, confirming that these are in a better position compared to their colleagues in the flats sector,” a trader comments.