Spanish scrap, rebar prices continue to fall
Scrap and rebar prices in Spain fell this week as a result of the downturn observed in the international market. These are expected to slip further in the next few days, sources tell Kallanish.
"Scrap grades moved down in the last days and the general sentiment is that current offers will be short-lasting as a new drop by €10-15/tonne [$10.95-16.43] is expected next week,” a local source comments.
Another market participant confirms that Celsa was the first to adjust its purchase prices by almost €15/t, while other large steel producers stayed on the sidelines for almost a week before accepting the new market reality.
“Celsa took advantage of the slowdown in international offers and closed two large purchases abroad, and this has a downward effect on prices in Spain. It is understood that the company has a solid order book and is works at a higher rate in the last weeks,” he observes.
Sources confirm availability of material is higher compared to the beginning of April as a result of the improvement in manufacturing activity, mainly supported by the recovery seen in the automotive sector and white goods demand. Market participants admit scrap prices should fall a little more this month.
New arisings grade E8 scrap is offered at €420/t delivered since this week. Both E40 and demolition-quality grade E3 stand at €405/t, while E1 is at €370/t on the same basis.
Spanish rebar prices have meanwhile reacted to the last scrap price adjustments. Most suppliers estimate that rebar prices could fall under €670/t for 16mm material by the end of the month.
“Demand from the construction sector looks to be improving, although not as anticipated at the beginning of the second quarter,” a distributor observes. “Large investments in public infrastructure seem to be conditioned on the results of the regional elections on 28 May.”
Rebar is currently sold domestically in Spain at €390-400/t ($427.79-438.75) base. Including €262/t size extras and €23/t loading expenses, transaction values are at €675-685/t ex-works.
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