The temporary price increase seen in the second week of June did not last long, with prices decreasing by €50/ton ($54.8) on Friday.
Market participants believe that the current prices may be short-lived due to the improving Turkish rebar market and local demand. Activity in the Turkish market has been low as sluggish exports and the depreciation of the lira have increased uncertainty. Therefore, new price adjustments will not come as a surprise.
Traders are concerned about the slowdown in demand in the Spanish construction sector. Faced with minimal activity, large steel mills prefer to start planned maintenance work earlier.
Currently, local rebar prices in Spain are hovering around €320/ton ($350.69) at the base level. When dimensional extras (€262/tonne) and loading costs (€23/tonne) are included, the transaction value reaches €605/tonne ex-works. Some offers for 16 mm rebar were also reported at €600/ton ex-works.
Italy's rebar market, on the other hand, remains subdued. Some producers reduced their offers to €410/t ex-works from €430-440/t ten days ago. However, the decrease in rebar prices is slowing down as producers' price hikes seem to have slowed down the sharp decrease seen in the last few weeks. Few contracts are being signed at higher prices compared to early June. Prices are currently hovering around €370-380/t ex-works. Domestic contracts including length additions are around €630-640/t ex-works, up by around €20/t, but for very low tonnages.
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