According to market participants in the Italian long steel segment, attempts to raise sales prices have continued this week, although sales volumes remain modest.
As for prices, sources have reported list prices at €470-490/mt ex-works base (€735-755/mt ex-works including regular extras), around €50/mt higher than the levels at the beginning of September. However, sales continue to be reported at €460/mt ex-works base (€725/mt ex-works including regular extras) and even at lower levels for limited tonnages.
End-users state that they are unwilling to build up inventories during the remainder of the year and are limiting purchases to immediate requirements to avoid ending the year with excessively high stock levels.
In the wire rod segment, sales forecasts for October indicate a slight month-on-month increase of around €5/mt, with the increase remaining limited due to the substantial lack of demand. This would bring drawing-quality wire rod prices to €675-685/mt and mesh-quality wire rod prices to €665-670/mt, both delivered.
According to one market participant, this slight increase is mainly driven by rising production costs, while demand from end-users continues to be restrained by the impact of the international situation and the depletion of European funds for construction and infrastructure.
No wire rod export offers have been reported from Italy, while rebar offers have been heard at around €590-600/mt FOB, although one source stated that it had also heard offers at levels around €20/mt lower.
In conclusion, it could be said that the Italian market – as well as the broader European market – is facing a paradox: producers have to cope with higher costs and therefore seek to raise prices, but at the same time these higher prices are passed on to downstream consumers, which are unable to bear them.
Author: SteelOrbis Editorial Team
