The Spanish rebar market ended November unchanged, and most sellers and distributors expect factories to raise prices for the next round of purchases.
"Prices have remained stable since the end of September. However, prices should rise in the next few days," a market source tells Kallanish. "Some manufacturers are already showing signs that the current high production costs are reducing their profitability, making price increases inevitable."
With the exception of ArcelorMittal, which seems to be making no exceptions despite the uncertainty in the market, some long products manufacturers in Spain seem to be showing more flexibility by offering discounts when new contracts are awarded.
"The price increase comes at a time when construction activity is booming. Distribution centers are faced with the dilemma of how many materials to stock up on, as demand is high," says one of the sellers. "Prices are not expected to fall. We are facing uncertainty due to new market regulations[CBAM], which suggest that high levels will persist for some time."
Given the increase in pre-bookings in recent weeks, traders confirm that they expect the volume of purchases to remain stable until mid-December and the closing of the Christmas market, even with higher prices.
According to the Spanish Chamber of Commerce, the monthly domestic rebar price index (B-500 SD 12 m/12 mm) rose for the tenth consecutive month in November. The index was 201.26, which is 0.5% more than in October. It also grew by 12.77% year-on-year. The index is based on the value of 100 in 2014.
Current prices for rebar with a thickness of 16 mm in Spain are 368-373 euros per ton (426-432 dollars). Taking into account the surcharge of 262 euros per ton and the cost of loading, the transaction value is 630-635 euros per ton from the factory.
Todor Kirkov Bulgaria
Kallanish.com
