Italian rebar prices plummet

Italian rebar prices are declining by some €50/tonne ($53) compared to the beginning of the month. Demand remains very slow with sales only happening back-to-back. The majority of contracts are implemented for 150 tonnes or 400 tonnes and mills are carrying out stoppages to balance demand and supply, Kallanish notes.

Since the Made in Steel tradeshow in Milan earlier this month, large buyers have observed a frozen market with no demand at all, with everybody expecting significant declines. The entire market is now accepting that strong price falls are necessary in order to achieve a “normalisation” of activity at more moderate prices.

One seller says rebar consumption has fallen by as much as 70% since the end of last year. One large distributor of long products sees practically “no sales activity and no interest from end-users” since Made in Steel.

Buyers are achieving €380-410/t base ex-works in deals over the past few days. Including size extras, domestic prices are hovering at around €640-670/t ex-works. The high point of the range however is for 100-150 tonnes. Mesh is at €500-510/t base ex-works on average, or €800-810/t ex-works including €300/t size extras, sources suggest.

The price descent is not considered to be over. This week, prices are seen sliding again significantly.

Natalia Capra France