Italian rebar prices are ticking up by around €10/tonne ($11.84/t) compared with January, following recent increases announced by producers, who are targeting €320/t base ex-works, Kallanish notes.
Several buyers, however, say market activity has yet to fully recover after the Christmas holidays. Demand in January and February remains subdued, with heavy rainfall in central Italy delaying construction activity, agents and buyers confirm.
One large European producer adds that the rebar market across Europe is generally weak, with only limited exceptions. Producers are under pressure to push price increases as costs, particularly energy, continue to rise.
Scrap prices are also moving higher across Europe, while in Italy they are increasing more sharply due to tight availability.
Despite producers’ firm attitudes, price increases have so far been implemented only moderately. Average contract prices are currently around €300/t base ex-works. Volumes concluded above this level are for small tonnages.
Mesh prices are also ticking up to €390-400/t base ex-works, plus approximately €300/t in extras. Including size extras of €260-270/t, effective rebar transaction prices are currently assessed at €560-580/t ex-works, sources suggest. One steelmaker is rumoured to have decreased extras only for some commodity grade mesh by €20/t to possibly stimulate demand.
Meanwhile, rebar producers active on the German market are continuing their attempts to increase prices, but buyers remain caution.
Currently base prices are at €350/t, translating to €615/t delivered, including €265/t for size extra. One international mill group was heard going for €20-30/t extra for its products. According to a central German manager, domestic mills confine themselves to €15-20/t for the moment, which is little above the increase of scrap prices in January (see Kallanish 5 February).
