New price increases are being prepared this month in the Spanish rebar market, Kallanish learns from market sources.

Large mills are preparing to force a new hike of some €10/tonne ($12/t) in domestic prices in the coming days.

“Spanish scrap prices will probably go up towards the end of September,” a local merchant says. “A large local mill increased further its prices by some €5/t last week, awaiting an additional bigger hike of rebar prices along with the other domestic producers,” he adds.

The new prices have also been boosted by the surcharge of €9/t announced by Celsa earlier during the summer. This hike was to cover higher energy and input costs during the summer and is set to be followed by other rebar producers. One source even says that it could be increased to as much as €20/t. If that is confirmed, prices will set a new record for this year, Kallanish notes.

Rebar is currently sold domestically in Spain at €220-230/t ex-works base, equating to some €470-480/t delivered. As reported, Spanish mills are selling in export markets at the equivalent of €465-475/t fob.