Italian merchant bar prices remain stable on-week. Sales have nevertheless failed to pick up in July after a lack of demand in the first half of the year, Kallanish notes.
Based on reports from various buyers and sellers, it appears the consumption crisis in Europe has become a long-term structural issue. The current range for domestic merchant bar is at €280-320/tonne ($302-346) delivered. Deals achieving the peak of the range has been a rare occurrence lately, happening in recent days only for one truckload.
Material from other EU countries is priced at approximately €20/t less. Prices are currently fluctuating at around €700-740/t, including size extras.
Sales volumes for products derived from wire rod have however shown consistent strength, both in July and throughout the first seven months of the year. Two agents selling various long products claim they were able to achieve satisfactory sales volumes due to the high-added-value products derived from wire rod. A distributor mentions that apart from merchant bar, he experienced average sales, thanks to better demand for other longs like beams.
Sections producers, including ArcelorMittal, have decided to raise prices by €20/t for July contracts (see Kallanish 24 July). Beams supply is extremely limited in Italy and demand is stronger compared to other long products. According to sources, prices for the first category are at around €770-790/t delivered, which includes a €20/t increase. Some sellers agree this price is effective, but it needs to be consolidated.
Natalia Capra France
