Italian rebar contract values increase amid uncertainty

Italian rebar contract prices are increasing by some €20/tonne ($20). Sources in the market tell Kallanish that steelmakers started by hiking values moderately on Monday but are since asking for a €70-80/t increase compared to October levels. The move is designed to bring to an end the continuous slide in prices seen since last month.

Rebar makers are now all asking for €580/t base ex-works. At the beginning of the week, they were quoting €520-530/t. Contract values are hovering at €500-530/t base ex-works. Including size extras, domestic rebar prices are at €760-790/t ex-works. Mesh asking prices are at €650/t ex-works base, depending on volumes, sources suggest.

Distributors reported good demand in October. Thanks to the rebar price decline last month, demand resumed and the market was more dynamic compared to September. November however has been slow so far. Those who spoke to Kallanish believe the rebar price increases will hamper sales to end users, while all other construction material prices, including timber, are falling.

Two sources say thanks to last month’s improved demand and lower rebar prices, they bought higher volumes in October compared to September. Sources believe the current increases will stop the price decline but others forecast that by mid-November rebar prices will begin to fall again. This is also in view of reduced activity in December, which will see only ten effective days of work before the holiday season starts.

Natalia Capra France