Italian rebar prices are seen stabilising week-on-week after falling by around €30/tonne ($34.3/t) in June. Buyers expect values to continue declining this month, though producers appear to be resisting low bids, Kallanish notes.
Some steelmakers are considering increasing prices this month before the August maintenance stoppages, but this is viewed as an attempt to halt the decline.
The drop in volumes since mills began raising prices in March has been significant, and higher prices cannot offset lower selling volumes in the longer term. Last month several long product mills implemented production stoppages to balance supply and demand, with more stoppages planned this month, impacting scrap demand and pushing domestic raw material prices down.
Rebar prices this week are steady at €420-430/t base ex-works amid subdued demand. Including size extras of €260-270/t, effective transaction prices are assessed at €680-700/t ex-works. Mesh is at €530/t base ex-works, excluding size extras of around €300/t, sources suggest.
A construction company reports that activity in June was limited and that it is being managed on a day-to-day basis. A distributor also describes consumption as highly uncertain, while another buyer confirms he continues to purchase a few truckloads per week to cover immediate needs only.
