The South European rebar market continues to face difficulties as the Algerian authorities have not yet issued import licences to enable export the product to the country. Some mills in Southern Europe are now starting to feel the pinch, Kallanish learns from sources.

Traders active in Algeria say that licences should be announced "... anyday", but note that this has been the case since March and giving a real deadline is now impossible. Meanwhile one source confirms that, given the lack of rebar imported in Algeria, the local suppliers, mainly the Turkish group Tosyali, have increased prices to almost €850-1000/tonne ($926-1090/t) for 8mm rebar.

Italian mills are reported to be struggling due to the lack of exports. “I have heard of mills lowering their production to 8 shifts per week, from 15 a few months ago. Many producers have their stores completely full as they await the licences to export,” a trader notes.

According to the European steelmakers' association Eurofer, longs exports to third countries dropped -23% year-on-year in January-February, mainly due to the Algerian situation. Traders now say that as soon as the licences are issued, there is a likelihood that freight costs will also increase significantly as all mills will try to sell as much as possible.

During recent weeks South European rebar suppliers have tried to look for alternative export markets. Some sales have been concluded in North America, but lately the price has dropped to as low as €390/t fob due to the lack of substitute markets available.