Sentiment in the Italian domestic longs market appears to have regained momentum this week. General price increases for semis and finished steel products at an international level are also exerting upward pressure on the Italian domestic market.
According to market participants, in the rebar segment the level of €440/mt ex-works base (€700/mt ex-works including regular extras) is now consolidated, and some producers are reported to be aiming to increase their offers by a further €20/mt. “We are collecting more orders, as customers are probably trying to stock a little more ahead of further increases,” a source stated. A market player at an Italian steel mill said, “Inventory levels are under control, and, despite the complex and uncertain geopolitical scenario, September could be a positive month. However, the market remains extremely volatile.”
In the drawing-quality wire rod segment, the price range of deals concluded for Italian material widened to €670-690/mt delivered in the past week, while for imported material end-users are offering €650-660/mt delivered, including CBAM costs. “Wire drawers continue to prefer domestic material, as it is subject to fewer risks,” a source stated. Another market player, who at the end of last week had expressed cautious optimism regarding the short-term market trend, now told SteelOrbis that the medium-to-long term outlook remains negative.
Market players in the trading segment continue to report medium-low demand levels, and one source believes that the upward trend will not last more than two or three weeks, since fundamentals remain weak and market dynamics have “changed significantly, making it very difficult to predict a clear trend”.
An increase in domestic offers – and prices – has also been reported in both the beam and merchant bar segments.
