Italian merchant bar values are increasing again, by €40/tonne ($48) compared to last week, sources tell Kallanish. As expected, values are now at €470/t base ex-works for June, in line with increasing scrap prices, and contracts are also gradually increasing.
Sellers and buyers expect more increases in June, with the rising trend of Italian long product prices expected to continue.
Including €420 size extras, contracts for merchant bar are now at €820-870/t ex-works, €20/t more compared to last week. Buyers are paying between €400-450/t base ex-works for the cheapest merchant bar grade.
Meanwhile, the main Spanish mills also have full order books, and opened and closed sales several times in May. They are said to be about to announce prices hikes for June.
Italian and Spanish mills are currently exporting between 70% and 80% of their output as demand, particularly from Easter European countries, remains strong.
Italian sections producers are also said to be mulling a €20/t increase in June, pushing prices for the first category of beams to €500/t base ex-works, sources say.
Natalia Capra France