Italian rebar prices are struggling to rise despite recent attempts by steelmakers to increase levels by around €30/tonne ($35/t) compared to early October.
The increases are aimed at recovering margins and halting the price erosion seen in recent weeks, Kallanish learns from market sources.
Buyers, however, are either adopting a wait-and-see attitude or continuing to restrict purchases to small truckload volumes. One distributor says he is willing to pay slightly more than his previous contract level but remains cautious, noting that producers are “asking too much given the current low consumption” while they are struggling to pass any increases downstream.
Steelmakers are asking for €260-270/t base ex-works with buyers pressing them to accept €240/t. Multiple sources say they are still being delivered material they purchased in the past weeks at €230-240/t base ex-works and are therefore not in immediate need of new bookings.
While most buyers are adopting a wait-and-see attitude, recent transactions for very small tonnages have been reported at around €250/tonne. Some additional sales are expected this week at slightly higher levels.
Meanwhile, the scrap price decline seen in October in Italy seems to have ended, with prices now stabilising.
Domestic rebar contract values are currently assessed at €240-250/t base ex-works. Including size extras of between €260-270/t, effective prices are reported in the range of €510-520/t ex-works. Mesh prices, meanwhile, are also averaging €250/t base ex-works, excluding an additional €300/t in size extras.
Natalia Capra France
