Italian rebar prices flatten

Italian rebar contract prices are flat on-month. Quiet demand and a general wait-and-see attitude is being reported this week. Post-holiday activity restarted on Monday and not many contracts have been signed so far.

Steelmakers are asking for €400/tonne ($438) base ex-works, sources tell Kallanish. This level has however not yet been achieved in transactions. Sources report purchasing limited tonnages this week at €350-360/t base ex-works. A seller reports the level of €370/t being achieved but, again, for small volumes.

Producers are preparing to pay increased scrap prices this month, expecting €5-10/t hikes compared to last month depending on their needs. Mills continue to face high processing costs. Including extras, domestic rebar is fetching €610-630/t base ex-works. Domestic mesh is meanwhile being sold at about €450-470/t, to which buyers must add transport costs and around €300/t size extras, also flat on-month.

Two sources say they have enough work until the end of the year, thanks mostly to road works and new infrastructure projects that are being financed by the European recovery fund. This is largely offsetting slower orders from the private residential construction sector. Because of several road work projects, demand for mesh is lively, Kallanish hears. Given the high European prices, some buyers are turning to imports. Offers of Turkish material have been heard at $600/t cfr Italy.

Natalia Capra France