Italian longs prices are holding steady following the increases implemented in March in response to rising costs linked to the US-Iran conflict. Further hikes are being applied or considered this month, but the market is showing resistance to additional increases.
Several sources tell Kallanish they are in a wait-and-see mode ahead of the Tube and Wire trade show in Düsseldorf this week.
Domestic merchant bar prices have risen against pre-conflict levels, with a further €20-30/tonne ($23.37-35.06/t) increase under consideration or already implemented, depending on mill.
Demand, however, remains subdued, with multiple buyers and sellers reporting low activity levels. One source notes that volumes purchased in March could take up to three months to deplete, while several sellers and distributors describe last month as solid, with apparent demand having resurfaced. That momentum has since faded, particularly for merchant bar but also across other long products including rebar, Kallanish notes.
Current contracts for merchant bar are heard at €300-320/t base ex-works, equivalent to €720-730/t including size extras. Some mills are now implementing further increases to €330-340/t due to persistently high costs.
March was initially a slow month for sections sale as the European increases have encountered refusals in some countries, particularly in Germany.
In Italy after an initial resistance soon after the conflict, demand has picked up at increased prices. Section prices in Italy rose by some €40-50/t compared to the beginning of March. The first category of sections is now at €800-810/t delivered on average with the sellers increasing their prices by another €20/t pushing up new levels to €830/t. Agents and buyers report steady activity in the sections segment with steady demand coming from infrastructure projects.
