Italian longs forecast to decline further

Italian long products prices are forecast to decrease in the coming days in both contracts and producers’ asking values. According to sources who spoke to Kallanish, a price slide is the inevitable consequence of a protracted deadlock in market activity.

Consumption continues to decline this month after a weak September, hampering sales of wire rod, rebar and merchant bar. Prices are flat for these products. However, selling small tonnages at high cost of production is unsustainable and larger volumes are needed.

At present, including size extras, contract prices for merchant bar remain at €1,090-1,100/tonne ($1,059-1,069) ex-works. Wire rod is at €850/t ex-works for drawing-quality material, sources suggest.

Rebar prices have also decreased to the level of €600/t base ex-works, meaning €860/t including size extras, and values are forecast to continue to decline this week. Demand for sections continues to be sustained, despite lower prices being offered by other European producers. Beam contract values for the first category remain flat at €1,220-1,230/t ex-works, depending on tonnage.

Natalia Capra France