Trading activity in the Italian long products market has slowed significantly due to the August lull. However, before the seasonal maintenance shutdowns begin, merchant bar producers are seeking increases of €30/tonne ($34) on July levels.
Over the past four weeks, market conditions have remained weak, with merchant bar and beam prices showing little movement. Scrap prices declined notably in July but have stabilised since last week.
Several market participants view the subdued demand for merchant bar as a structural issue. Multiple distributors reported stable beam sales volumes in July, while merchant bar sales remained subdued, highlighting the deep challenges the segment is facing, Kallanish notes.
Italian domestic merchant bar levels are at €670-680/t delivered inclusive of size extras. The price increase is set to take effect from 25 August, coinciding with the resumption of production at mills following the traditional summer shutdown. The first category of sections is also holding steady at €770-780/t delivered, with competitive Spanish-origin offers being tabled in July.
Natalia Capra France
