Italian merchant bar producers seek increases

According to sources, producers of Italian merchant bar and beams are looking to secure a €30/tonne ($32) increase for new July contracts. It appears that other long steelmakers are also considering raising prices for July.

According to market participants, energy prices in Italy, already €40/t higher than in other EU countries, are expected to rise next month, leading to a significant increase in steel prices.

Given the exorbitant electricity expenses and weak market conditions, certain mills are projected to extend their shutdown periods in July, in addition to the customary summer maintenance breaks in August. Producers are seen implementing longer maintenance stoppages in August. A large buyer interviewed by Kallanish expresses interest in acquiring long products tonnages before mills halt production, but “only at their current [price] levels”, he comments.

Multiple buyers agree on rejecting any price hike that the sluggish market cannot handle due to low consumption. Longs prices remain relatively stable, with the exception of rebar values, which increased in June. Merchant bar values have not changed and are still at €280-290/t base ex-works or delivered, depending on the contract.

Producers are said to be increasing prices to approximately €300-310/t base ex-works. Including size extras, values are now hovering at about €690-700/t. Meanwhile, sections prices remain stable and are projected to stay so in July. Demand for beams is relatively stronger compared to other long products. However, there is limited availability of material. According to sources, prices for the first category are estimated to be at around €750-760/t delivered.

Natalia Capra France