Italian rebar prices rose during the week to Wednesday November 4, with mills pushing for higher levels to offset rising energy and transport costs, while underlying demand remained subdued.
Market participants said the upward movement was primarily driven by increasing production costs rather than any meaningful improvement in buying activity.
“Demand remains relatively flat and subdued, and the main driver behind the recent increase in rebar prices appears to be the continued pressure from high energy costs,” one buyer source told Fastmarkets.
Electricity prices in Italy rose at the beginning of the week, while gas prices were also reported at significantly higher levels, adding further pressure to steelmaking costs, sources said.
“As a result, steel mills are taking an even firmer stance on pricing,” a distributor source said.
Sources added that rising production costs were prompting mills to seek higher prices for new orders to offset lower margins on previously accepted business, particularly in export markets.
Truck driver demonstrations in the previous week had caused logistical disruptions in southern Italy, resulting in delivery delays and material shortages at some construction sites.
“The transport situation appears to have returned to normal following the disruptions of last week,” one buyer source told Fastmarkets.
Transport costs nevertheless remained elevated.
“Transport costs remain extremely high, as truck operators are only willing to operate if they are adequately compensated,” a producer source told Fastmarkets.
In northern Italy, particularly around Brescia, workable levels and deals were reported at €760-770 ($850-862) per tonne ex-works, although some market participants indicated that prices could reach €780 per tonne.
In southern Italy, workable levels were heard at €770-790 per tonne ex-works, with a deal reported at €790 per tonne. Offers were heard at €770-780 per tonne, while mills were also pushing indicative offers higher, to €790-800 per tonne.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy narrowed upward to €760-790 per tonne on November 4, from €750-790 per tonne one week earlier.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, was unchanged at €750 per tonne.
In Northern Europe, one market participant reported a workable range of €700-740 per tonne delivered, but these levels could not be confirmed by other market sources during the assessment period.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was therefore unchanged at €660-700 per tonne on November 4.
No fresh price indications for European wire rod were heard during the assessment period, amid limited trading activity.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was unchanged week on week at €670-680 per tonne.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was also unchanged at €705-715 per tonne on November 4.
