The Spanish long products market has been on the recovery path since May, helped by increased rebar consumption supported by increased activity in the construction sector, according to market participants Kallanish.
"In recent weeks, demand from the public sector has changed from weak to stable. We are also seeing a noticeable increase in activity in the private construction sector," the source comments. "Distributors report that as summer approaches, end consumers are purchasing more and more real estate in large volumes. Overall, market confidence in June and July is very optimistic."
However, some caution remains. Another market participant warns that the dynamics observed in May may slow down, as factories increased selling prices by about 10 euros per ton due to higher scrap metal costs.
"This price increase reduces demand, as well as buyers. trust is growing after several months of uncertainty," the source adds.
Despite the recent price adjustment, expectations for the near term remain positive, supported by seasonal demand and a gradual stabilization of economic conditions.
The monthly domestic rebar price index in Spain decreased in May compared to the previous month, according to data released by the Spanish Chamber of Commerce. The index stood at 192.90, down 0.61% from April. However, it grew by 11.69% year-on-year. The index is based on the value of 100 in 2014.
The 16 mm thick material is offered in Spain at a price of 360-362 euros per ton (403.27-408.95 US dollars per ton) on delivery terms from the factory. Taking into account the additional dimensions and loading costs, which amount to 262 euros per ton, the transaction value is 622-624 euros per delivered ton.
Todor Kirkov Bulgaria
kallanish.com
