Some Italian rebar producers are back to quoting at increased prices this week after they stopped sales for ten days due to high production costs. However, uncertainty continues, as do low sales volumes. Producers still have very short visibility, sources tell Kallanish.
Rebar makers are now asking for €330/tonne base ex-works. Transaction values this week however are stable on-week and hovering at €280-290/t ($295-305) base ex-works. Very few transactions for small volumes are reported taking place at €300/t. Including extras, domestic rebar is fetching €540-560/t base ex-works. Domestic mesh is meanwhile being sold at about €370-380/t, also stable on-week. Buyers must add transport and around €300/t size extras.
The hike attempt is meant to stop values from declining further and recover some margins. Distributors and fabricators who spoke to Kallanish say they have some work thanks to infrastructure projects, but larger distributors are seeing their margins squeezed due to the lower sales volumes. One firm says it is beginning to sell its range of long products at below cost and sees the market being particularly quiet.
Natalia Capra France