Italian longs quiet persists, buyers forecast steep falls
 EUROMETAL  // Italian longs quiet persists, buyers forecast steep falls

Italian longs quiet persists, buyers forecast steep falls

Published: 22 May 2023
Italian longs quiet persists, buyers forecast steep falls

Italian long steel activity is at a minimum, with sales volumes low and prices slightly declining. However, merchant bar values have kept relatively steady and no collapse has happened despite the slow market, Kallanish notes.

Low trade volumes were reported in April and May for merchant bar, with buyers only purchasing back-to-back. The Italian market is moving towards a significant price fall across all steel products, with buyers refusing to stock up. Small merchant bar volumes are fetching €440-450/tonne ($474-485) base. Including size extras, domestic values are hovering at €860-870/t ex-works. Competition from Spanish and Eastern European material is also being reported in May.

Since the Made In Steel tradeshow in Milan earlier this month, activity has further slowed and the market is expecting further price declines, in line with Italian scrap losing €50/t month-on-month.

Sellers are reporting a quiet market also for beams, with prices declining slightly on-week by some €10/t. Distributors are selling the first category of sections at €950-960/t ex-works including size extras.

All Italian long steelmakers are now implementing production cuts to balance demand and supply. A source tells Kallanish rebar consumption in Italy has fallen some 70% year-on-year so far this year.

Natalia Capra France

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Italian longs quiet persists, buyers forecast steep falls

Published: 22 May 2023
Italian longs quiet persists, buyers forecast steep falls

Italian long steel activity is at a minimum, with sales volumes low and prices slightly declining. However, merchant bar values have kept relatively steady and no collapse has happened despite the slow market, Kallanish notes.

Low trade volumes were reported in April and May for merchant bar, with buyers only purchasing back-to-back. The Italian market is moving towards a significant price fall across all steel products, with buyers refusing to stock up. Small merchant bar volumes are fetching €440-450/tonne ($474-485) base. Including size extras, domestic values are hovering at €860-870/t ex-works. Competition from Spanish and Eastern European material is also being reported in May.

Since the Made In Steel tradeshow in Milan earlier this month, activity has further slowed and the market is expecting further price declines, in line with Italian scrap losing €50/t month-on-month.

Sellers are reporting a quiet market also for beams, with prices declining slightly on-week by some €10/t. Distributors are selling the first category of sections at €950-960/t ex-works including size extras.

All Italian long steelmakers are now implementing production cuts to balance demand and supply. A source tells Kallanish rebar consumption in Italy has fallen some 70% year-on-year so far this year.

Natalia Capra France

 

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