Uncertainty is becoming ticker in the European rebar market and it is being spoken nowadays that rebar producers may reduce their capacity usage in order to prevent further price decreases, as it is thought that finished steel prices in global steel markets may continue to decline amid still low iron ore prices and softening scrap prices.
The North African rebar market, southern European rebar mills' major export market, is still dominated by cheaper Chinese rebar. Besides, the euro has strengthened against the US dollar again, with the exchange rate reaching 1.30 and this is affecting European mills' competitiveness in their export markets negatively against their Chinese and Turkish counterparts. European market players state that their position in export markets is threatened when the euro/dollar exchange rate is 1.30 or higher.
This week, ex-southern Europe rebar offers are standing at €480-485/mt ($624-631/mt) FOB for deliveries in October shipments and these offers have failed to gain acceptance in export markets, as they have remained fairly high as compared to offers from China and Turkey on the US dollar basis. Turkish rebar export offers are currently standing at $585-595/mt FOB, though it is thought that lower prices are also available for larger orders.
€1 = $1.30