The Italian domestic long steel segment has remained largely stable this week, although attempts to raise prices have been observed in exports.
Producers’ price requests have therefore shown limited changes, with rebar prices standing in a range of €480-490/mt ex-works base (€740-750/mt ex-works including regular extras), with the lower end up slightly by €10/mt compared to the levels reported by SteelOrbis last week.
However, with previous orders concluded at €440-460/mt ex-works base (€700-720/mt ex-works including regular extras), the new levels are struggling to gain acceptance. In the meantime, the complex domestic and international scenario has been compounded by increases in fuel and transportation costs. Recently, estimated freight rates by truck from northern to southern Italy have reached €65-70/mt, up by around 10 percent compared to the previous levels. In fact, strikes and transportation blockades in response to high fuel prices are expected from October 16 to October 20, particularly in southern Italy.
In addition, slowing construction activity and high inventory levels are leading to lower demand in the Italian domestic market, and not only in the rebar segment.
At the beginning of this week, a market participant in the wire rod segment stated that he is observing “some tension” due to “rising electricity and transportation costs and stagnant orders”. As for prices, the range for wire rod in the Italian domestic market in October is expected to stand at €675-680/mt for drawing quality and €660-670/mt for mesh quality, both delivered, indicating only very slight changes compared to the previous month.
“Customers are limiting their purchases to immediate requirements, as business activity has declined significantly,” a trader commented.
Italian producers are therefore seeking to ease the pressure in the domestic market by focusing on exports, particularly to the Mediterranean region and eastern Europe. According to reports, the latest Italian rebar export offers to these destinations stand at €590-600/mt FOB, amid increased inquiries from Ukraine. However, the latest confirmed deals appear to have been concluded at around €590/mt FOB or slightly above. The latest wire rod offers have also been issued at the same level, though they have failed to attract interest from end-users. Accordingly, the average Italian wire rod export price may be estimated at around €580/mt FOB.
Author: SteelOrbis Editorial Team
