European rebar producers were pushing for higher prices in a week to Wednesday November 25, citing low stocks and rising production costs, sources told Fastmarkets.
*** European rebar , Southern Europe
In the south of the region, rebar prices rebounded this week, backed by good buying activity and low stocks at producers.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Southern Europe was €۴۴۵-۴۵۵ ($۵۲۸-۵۴۰) per tonne on Wednesday, up from €۴۳۰-۴۴۰ per tonne last week.
*** European rebar , Italy
Italian rebar mills achieved higher prices in deals this week, with price growth being supported by low stocks at producers and good demand, sources said.
“They [Italian rebar producers] have not enough stock because production is influenced by the quarantine of some workers [due to Covid-19 pandemic],” one buyer said.
In Italy, rebar was heard trading at €۴۱۰-۴۲۰ per tonne ex-works, equivalent to about €۴۴۵-۴۵۵ per tonne delivered, up by some €۱۵-۲۰ per tonne week on week.
Some offers were heard at even higher levels – €۴۳۰ per tonne ex-works, which is equivalent to about €۴۶۵ per tonne delivered. This was not included in the assessment because no deals have been concluded at this level so far.
Buying activity in the country’s rebar market was said to be good this week and largely unaffected by regional lockdowns, even in red zones, sources said.
“Demand remains good these days, but stocks at mills are very low,” one trader said.
“Construction is performing well in Italy; lockdown didn’t impact it, not even in the red zone,” a second trader said.
Market participants believe the uptrend in the rebar segment will continue until the year-end with shortage problems expected to be exacerbated by holiday stoppages in December.
“Producers will stop production in the second half of December, for a week or two, so we think that rebar prices will be high till the year-end,” a third trader said.
“We think that this [uptrend] will last till the new year. During the Christmas holidays, producers will close for a week or two. They do not need to place too many orders so they can move up the price,” a fourth trader said.
*** European rebar , Spain
In Spain, rebar producers have also managed to achieve some increases in rebar prices this week, supported by short supply.
Rebar in the country was heard trading at €۴۴۵-۴۵۵ per tonne delivered, up by €۱۰ per tonne since last week, with offers heard at €۴۵۵-۴۶۰ per tonne delivered, sources said.
“Buyers reluctantly accept higher prices, with price growth being supported by growing scrap costs and lower availability rather than gradual demand improving,” a mill source said.
*** Northern Europe
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe was at €۴۸۰-۴۹۰ per tonne on Wednesday, narrowing from €۴۷۰-۴۹۰ per tonne seven days ago.
The assessment includes offers, deals and achievable prices reported by market participants over the past week.
But some producers said they were still in discussions for December bookings and higher prices could be achieved.
“We have not fully started December bookings; negotiations are still under way,” a mill source in the region said.
Demand from the construction industry, the key end-sector for rebar, was good in most northern countries, mostly driven by the public sector. New regional lockdowns across the region had little effect on buying activity, sources said.
Consequently, market participants are expecting the uptrend in rebar segment to continue in December, sources said.
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