Italian rebar producers have pushed prices up by a further €20/tonne ($23.08/t) this week, with some mills suspending sales as offers move to €430/t base ex-works compared €410/t the week before the Easter break, Kallanish learns.
The sharp and successive price increases seen in Italy began shortly after the outbreak of the US-Iran conflict and are driven by surging energy costs linked to the hostilities.
At the beginning of March, buyers were purchasing material at €270-280/t depending on order size. New transactions are now at €410/t base ex-works.
However, the steep increases and repeated sales stops by producers are impacting market activity. Multiple sources confirm transactions are minimal at current price levels, with buyers limiting purchases to very small tonnages, one or two truckloads at a time, to cover immediate needs only.
Distributor stocks are described as high, with weak downstream demand allowing only a slow depletion. Construction companies are said to be delaying new building projects in response to soaring prices, by several months until there is greater market clarity. One large distributor says he will not purchase a single tonne in April at current prices, having covered his needs before the successive rounds of increases began. With the market so sluggish April is seen as a slow month.
Sources are also pointing out the payment defaults and delays that are now more and more frequent both in the north and in the south noting that companies cannot afford to buy at high prices. Including size extras of €260-270/t, effective transaction prices for Italian rebar are currently assessed at €670-680/t ex-works, up from an average of €540/t at the beginning of March.
Mesh prices have also risen sharply, from contract levels of €340/t base ex-works at the start of March to €460-470/t, excluding approximately €300/t in extras.
Author: Natalia Capra France
