Italian rebar makers mull price increases

Italian rebar makers are mulling increases for November of approximately €30/tonne ($32.49) compared to current quotes. Last week, one producer also communicated increases to customers, but it has so far not been imitated by other mills.

The steelmaker, which is timidly communicating hikes, is reported to be asking for €310/t base ex-works, but all other steelmakers are quoting €280-290/t base, according to buyers and sellers who spoke to Kallanish.

Activity remains slow, with customers only buying back-to-back. There are no signals that price increases will be sustained, an agent and construction company confirm.

Contract values have remained relatively consistent in recent weeks. Current transactions in the domestic market are occurring at approximately €270-280/t base ex-works. Including additional size extras at an average cost of €260/t, current values in Italy are hovering this week at €530-540/t ex-works. Domestic mesh stands at approximately €380/t, not accounting for transport costs. An extra fee of €300/t applies for size extras, sources suggest.

Mills are experiencing financial pressure due to elevated scrap and energy costs, coupled with narrow profit margins. A number of producers are planning on implementing stoppages with temporary layoffs. The 1 November bank holiday will be used to execute a week-long production halt for some mills. One longs producer will implement a stoppage next month of as long as three weeks.

A source indicates that while halting production is not the preferred option, it represents the sole practical method to reduce costs. Another source suggests the price of scrap, although diminished, remains excessively high. In southern Italy, especially, mills are overpaying for scrap, resulting in almost non-existent margins. “The only viable option is to halt production and attempt to raise prices,” the source comments.

Natalia Capra France