After Italian rebar prices ticked up by around €15/tonne ($17.77/t) last month, momentum for further increases appears to be fading, with the €320/t base ex-works level targeted by producers in January now widely seen as unachievable, Kallanish notes.
The €320/t base level has been concluded only in isolated cases for single truckload volumes. Current market assessments place contract prices at around €300/t base ex-works, although several participants are expecting levels to soften further in coming weeks, potentially retreating to €280–290/t base ex-works.
Buyers say that in the current sluggish market, price increases rarely hold for more than a couple of weeks. Activity among construction companies and distributors remains weak. In central Italy, prolonged heavy rainfall has delayed activity at building sites, while sources agree that private residential construction has slowed significantly and demand from new projects remains unreliable. One source adds that despite cost pressure from higher scrap and energy prices, producers may be forced to accept lower rebar prices in the second half of the month.
Mesh prices are also stable at €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. Others may follow, sources believe.
