Italian rebar makers are seeking a €50/tonne ($54) increase with the objective to slow the downward trend in rebar values that started in mid-January. Contract prices are again losing €10/t ($10.9) week-on-week, market sources tell Kallanish.
This week, paid values are hovering at €460-470/t base ex-works, down from last week’s €470-480/t. Including size extras, domestic prices are now at €720-730/t ex-works, sources suggest.
Distributors are reporting a high level of stocks following a very low rebar sales performance last month. January is seasonally a slower month but this year, activity has been particularly subdued, with the private residential construction sector ordering small steel volumes and delaying projects because of persistently high prices of steel, cement and timber. Construction costs increased significantly in 2022 due to higher energy, transport and financial costs.
Some rebar makers are asking for €520-530/t base ex-works. Considering the current uncertainty and sluggish orders from construction contractors, distributors believe any increase is not sustainable and say they prefer to rely on their stocks for the coming weeks.
Natalia Capra France