Italian long steel prices have flattened after modest increases earlier this month failed to gain traction, as weak consumption continues to weigh on the market.
Demand for merchant bar remains structurally subdued, while sections and rebar are also seeing limited activity. Attempts to raise merchant bar prices by €10-20/tonne ($11.6-23.2/t) in October have largely fallen flat, market sources tell Kallanish. Domestic prices are now stabilising at around €650-660/t, ex-works, including size extras. Sources report the presence, particularly in the south, of lower-priced Turkish merchant bar.
Sections prices are likewise steady, but European producers continue to face pressure on margins as production costs remain high. Market participants describe October as a “quiet month” for sales. “It was not a catastrophe, but not a strong month for sales either,” one source says.
Export activity has also been muted, with central European demand weak and Germany, traditionally a key buyer of Italian longs, “stuck”, according to a source. German buyers are reportedly absorbing far smaller volumes than usual from Italy.
The first category of sections in the domestic market is holding at €740-750/t delivered on average.
Meanwhile, Spanish suppliers remain active in the Italian market for both merchant bar and beams, offering prices at roughly €30/t below domestic levels. Their competitive presence continues to add pressure to Italian mills struggling to pass through higher production costs to end-users.
Natalia Capra France
