Spanish rebar prices have slipped at the beginning of February, on the back of decelerating demand seen globally and a quietening Turkish market in recent weeks, Kallanish hears from market sources. Current domestic prices have returned to levels last seen at the end of August 2019, but a new fall is anticipated.
“Current rebar prices were affected by changes in the international market, mainly due to the slow activity of Chinese industry, as well as by the lack in demand in Turkey,” a source comments. “Market estimates are for a new decline in rebar prices in the short term following the volatility of raw material offers,” the source adds.
Domestic construction activity remains stable, but the local market is not optimistic about how long current demand will persist, another merchant says. “The uncertainty of the way that the international market will go puts some pressure on local rebar producers. These are also as a result of delays in large public works and projects,” he observes.
The monthly index for Spanish domestic rebar prices in January increased compared to that in the previous month, data published by the Spanish Chamber of Commerce show. The index stood at 98.84 or 4.23% more than that in December 2019. It was however -7.93% lower year-on-year. The index is based on a value of 100 in 2014.
Rebar is currently sold domestically in Spain at €175-180/tonne ($193.2-198.7/t) ex-works base, equating to a transaction price of €425-430/t delivered. This is around €5-10/t lower than in January.