Italian merchant bar prices decline on slow market

Italian long steel activity remains subdued, with sales volumes low and prices declining for merchant bar. Sellers say the product is facing a structural decline in consumption in all Western and southern European countries, Kallanish notes.

Particularly low trade volumes were reported in April, with buyers only purchasing back-to-back and forecasting more price declines in the coming days. Small merchant bar volumes are fetching €480/tonne ($527) base ex-works, while larger volumes are being sold at €440-450/t base. Including size extras, domestic values are hovering at €870-900/t ex-works. Overall, prices have lost some €30/t month-on-month. Competition from Spanish and Eastern European material remains significant.

March was a slightly better month for merchant bar, with suppliers ultimately saved by export sales, particularly to Germany. Many clients and end-users have taken advantage of the quiet market and the bank holidays of 25 April and 1 May to take holiday and idle their plants. Some buyers have not implemented a single order over the past 15 days, a seller comments.

Sellers are reporting stable sales volumes for beams at flat prices on-week. Distributors are selling the first category of sections at €980-990/t ex-works including size extras.

Natalia Capra France