Italian rebar producers are implementing a €20/tonne ($21.5) hike. Demand however continues to be subdued, with trading characterised primarily by back-to-back purchases, Kallanish notes.
The previous attempt to lift quotes by €20, in October, failed to lift transaction prices.
Current asking prices have reached €300/t base ex-works; however, one mill is reportedly still providing quotes in the range of €270-280/t. Market participants indicate the €300/t threshold has not yet been reached this week. One buyer, however, who is unwilling to purchase at this level, suggests that producers are adamant about securing the price increase and are not open to lower bids.
Should steelmakers maintain this discipline, a €10/t rise in transaction prices is likely to occur. An important distributor says he will not purchase volumes at elevated prices in the current market and is considering sourcing imports from North Africa instead.
This week’s contract values remain relatively stable, ranging from €280-290/t base ex-works. With size extras priced at an average of €260/t, effective prices are currently positioned in the range of €530-550/t ex-works. Domestic mesh is valued at €380-390/t, not accounting for transport expenses, with an additional €300/t for size extras, according to sources.
Multiple sources indicate that Egyptian rebar vessels were available in Sicily, with product priced at €530/t ex-vessel for orders up to 1,000 tonnes. However, a trader says these offers have been rescinded as the material does not have the necessary authorisations to be sold in Europe.
Natalia Capra France
