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S.Europe rebar mills close export deals at higher levels - 12 January 2012

Some southern European rebar mills have already managed to pass their new asking prices, closing deals in the last couple of days at €525-530/t ($667-673/t) FOB to Algeria for February delivery, Steel Business Briefing learns from market sources.

Spanish, Greek and Italian mills have increased their export prices to reflect higher raw materials costs. According to market players, the deals concluded are not yet very significant in term of tonnages, but the “the prices are clearly going in an upward direction”, a market participant confirms.

Southern European mills are quietly coming back from the Christmas holidays and would prefer not to sell rather than decrease their prices, mill sources tell SBB.

“We were able to sell above €530/t fob last Friday and I expect prices to move closer to €540/t levels very soon if euro dollar exchange rate stays where it is”, a Greek producer says to SBB.

“We sold a lot and we don’t have a lot of rebar in stock, so we will not lower our prices,” a Spanish producer tells SBB. “We have just re-opened. We are looking at the market, raw materials prices are up, so we are going to push for new increases,” an Italian producer says to SBB.

According to traders and local re-rollers, domestic demand in Algeria is good, with local buyers ready to do deals. However, the appreciation of the euro against the dinar is squeezing Algerian importers’ margins and that could lead to some delays in placing orders, as reported. “I sold my tonnages in dollars at the equivalent of €530/t, I think that this could be a new trend,” a Spanish producer tells SBB.

 

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