Posted on 17 Oct 2016
Growing confidence in Brazil’s construction market has lent support to domestic rebar spot prices, delaying the implementation of any discounts that companies had been expecting during the seasonally slow fourth quarter.
The S&P Global Platts weekly assessment for 10mm diameter rebar remained stable at Real 1,690/mt ($529.14 /mt) ex-works, taxes excluded, based on a range of Real 1,640-1,740/mt.
Construction companies and mills agreed that confidence is rising and some companies were restarting projects.
“Construction companies are calling us back to get updated offers, getting ready to resume projects in this last period of the year or in the beginning of 2017,” a steelmaker source said.
A construction company source said the sector had been “sunk in pessimism and wasn’t starting new projects. This is changing.”
“The level of confidence of companies has increased,” the source added. “Although sales [of housing units] have not increased, we are seeing more projects” progressing past the planning stage.
The mill source said that lower prices were thus “not on the radar yet.”
“I am only seeing expectancy and speculation,” he added. “Maybe it is speculation trying to become reality, but nothing concrete yet.”
