Southern European merchant bar prices are forecast to weaken by €15-20/tonne ($10.9-15.3/t) compared to the current levels, market sources tell Kallanish.

This seems to be due to a sudden plunge in exports to the Northern African region of Maghreb. Northern African buyers cancelled orders in course of delivery and traders and producers in Spain and Italy are trying to sell their unsold supplies at lower prices, sources say. The slowdown had already begun last week in the case of Southern European rebar, due to Algerian import restrictions starting from January and Morocco extending its safeguard duties (see Kallanish 12 January).

In Italy, domestic merchant bar prices are now in the range €460-470/t ($501-512/t) base ex-works, sources suggest. After an unsuccessful attempt by producers to increase prices in the country this month, Italian merchant bar prices have lost the high end of the range of €480/t seen in December.

Spanish merchant bar price levels are €20/t lower than those from Italy. Spanish producers are said to be willing to decrease their prices further in order to recover the lost orders, sources say.