The demand for fittings in Spain remains high, despite the fact that prices remain at a high level, Kallanish reports from sources in the local market. Most distributors started February by purchasing large amounts of material in anticipation of a slight price increase by manufacturers.
Scrap metal suppliers, however, doubt the dynamics of the market after the international changes observed in recent weeks.
"Rebar prices in Spain remain stable after recovering at the end of January," one of the sources comments. "This week, the plants are again trying to increase their supply by 5-10 euros per ton (5.93-11.87 dollars per ton)."
Most distributors have suspended purchases ahead of the expected price increase, ensuring supplies in a larger volume than usual, says another market participant. "The long products market in Spain is now more predictable, as the activity of private construction and the implementation of major public works projects are moving forward. Thus, an increase in inventory replenishment ensures business stability in the face of possible price volatility in the coming months," he notes.
Current prices for rebar with a thickness of 16 mm in Spain are 388-393 euros per ton (460.87-466.81 US dollars). Taking into account the surcharge of 262 euros per ton and the cost of loading, the transaction value is 650-655 euros per ton at the plant.
Meanwhile, the situation on the domestic scrap market currently looks somewhat unusual, the supplier notes. "Most large factories were experiencing a shortage of materials, but preferred to limit their purchases. There was a situation when it was impossible to raise world prices in anticipation of their decline, and the collectors could not take advantage of the situation," he says.
Another seller confirms that the sales growth expected at the beginning of the month did not materialize. "Despite this, scrap metal collection activity remains high, and market demand is expected to recover by the end of February and early March, although without price increases," he adds.
The second week of February began with the supply of high-quality scrap of the auto bundle brand to the Spanish market at a price of 355 euros per ton. Both new E8 scrap and crushed E40 scrap are typically offered at a price of 325 euros per ton. The other grades, E3 and E1, are priced at 315 euros per ton and 275 euros per ton, respectively.
.Author: Todor Kirkov Bulgaria
Kallanish.com
