Italian distributors saw some levels of order intake in April despite the Easter holiday and broadly sluggish market conditions.
Several mills raised long product prices during the month, while large distributors maintained competitive pricing compared to mills.
One large distributor tells Kallanish the market remains stuck and stagnant, though it has managed to sustain sales through low prices thanks to material purchased at cheaper levels.
Mills raised sections, rebar, mesh and merchant bar values but appear to have sold lower volumes than the distribution segment because of the high prices.
May remains uncertain for now as it started with very little demand. A second distributor says it is normally a busy month, but activity in Western Europe is expected to be particularly slow due to the high number of bank holidays in France and Germany. The source believes elevated long product prices will hold through May.
Some mills have sold strong volumes on the export market and say they are in no rush to sell domestically, intending to maintain high price levels. Two large distributors confirm they have no plans to buy at current prices and hold sufficient stock to cover May.
Italian merchant bar is currently trading at €360-385/tonne ($423.45-452.85/t) delivered, while producers are asking €390/t delivered and considering further increases. Current transactions, including size extras, range between €780-805/t.
Smaller buyers say they have purchased very little from producers last month due to elevated prices. Agents report subdued demand, with all buyers purchasing only for immediate needs. One agent tells Kallanish volumes in the first four months matched last year’s levels, but May has started extremely slowly. Sellers are taking a wait-and-see approach, and no forecasts are possible in current market conditions. Those with sufficient stock, such as distributors able to supply material immediately, are best positioned in this market.
Meanwhile, sections demand remains average, and prices are stable compared to late-April at €820-830/t delivered. Several sources believe current high prices for long products are unsustainable and a trend reversal lies ahead.
