Spanish Rebar Prices Hold Steady as Scrap Decline Looms Amid Market Slowdown

Kallanish reports that Spanish rebar prices remain stable as local mills continue to evaluate production and demand amidst a market downturn. Despite scrap values in Spain remaining steady at the beginning of the week, they are slow to react to the price declines seen in other major European markets. A source notes a slowdown in the construction sector ahead of Spain's general election on November 29, which has led to delays in several planned public infrastructure projects, although some significant projects are currently ongoing.

A market participant expresses skepticism about the return of long steel sales to normal levels by year-end, despite a partial recovery in construction activity at the start of the fourth quarter. Data from the Spanish Chamber of Commerce indicates a slight decrease in September's monthly index for domestic rebar prices compared to August, with the index at 243.56, a 0.46% drop from the previous month, but still 22.17% higher year-on-year. The index uses a base value of 100 from 2014.

Spanish Rebar Prices Steady Amid Scrap Decline

In Spain, 16mm rebar is being sold at a base price of €488-498 per tonne ($545.5-556.7/t), with size extras and loading costs adding another €262 per tonne, bringing the total transaction values to €750-760 per tonne ex-works. Meanwhile, local market prices for the new E8 quality scrap are anticipated to drop by €10-20 per tonne in the coming days.

A local merchant noted, “We've been expecting price reductions over the past week, but nothing has changed. We foresee imminent price cuts due to the recent downturn in the Turkish market, compounded by higher electricity costs and low demand for new steel, which are likely to trigger a significant decrease.” The week began with the new E8 grade scrap and shredded type E40 being offered in Spain at €330 per tonne, while other qualities, E3 and E1, are priced at €315 per tonne and €280 per tonne, respectively, delivered.