Italian longs prices stabilise, March volumes low

This week, Italian long steel prices are flattening amid uncertainty and quiet demand. Market participants are particularly concerned about the current banking sector woes, with buyers adopting a wait-and-see attitude.

While energy costs are now lower than last year, financial costs are soaring. Distributors continue to deal with lower consumption, particularly for merchant bar, wire rod and rebar, sources tell Kallanish.

Merchant bar producers are mulling price increases, but buyers believe there is still room for decline. While domestic demand remains in deadlock, export sales have improved over the past week to European countries such as Germany. Domestic buyers agree demand will not improve in April due to seasonally slow trade amid the Easter holiday. Italy has only 18 working days in April.

Agents and distributors are reporting low sales volumes of merchant bar in March, but prices remain flat on last week at €480-490/tonne ($522-532) base ex-works on average. Including size extras, contracts are at €900-920/t ex-works, sources suggest.

Sections in Italy are meanwhile increasing by €30/t, in line with higher scrap prices and price hikes implemented by ArcelorMittal in the first week of March. Service centres selling beams say this is the best-selling product in the longs segment thanks to a favourable supply/demand balance. Domestic values for the first category are now at €985-990/t ex-works, sources suggest.

Rebar prices are also flattening compared to last week, with trade limited to back-to-back sales, at €670-700/t ex-works including size extras.

Natalia Capra France