European Valve Exporters Benefit from Algerian Manufacturing Challenges

Over the past two weeks, rebar exporters from Southern Europe have benefited from problems at some of the main Algerian rebar factories.

At the end of April, the Tosyali Algerie factory was shut down for several days due to a workers' strike. While production is reported to have resumed, a knowledgeable trader comments that the situation remains tense there as Algerian workers continue to protest against the Turkish leadership.

Likewise, the state-owned complex El Hajar suffered a series of shutdowns in late April due to problems with the supply of iron ore from local Algerian mines.

As a result, over the past few weeks, Algerian importers from southern European factories have booked several shipments of rebar. New loads are also discussed by traders. Plants in Italy and Spain are reported to be offering at around € 470 a tonne ($ 526 /tonne) for Southern Europe, slightly above levels currently being achieved in the domestic southern European markets. However, Algerian rebar buyers are bidding at € 485 /t compared to Algeria and below, which means sales are expected to be slightly below the enterprises' expectations.

“I think the recent recovery in export volumes supports the long mills in southern Europe, confirming that they are in a better position than their plate counterparts,” commented a trader.