Some Italian rebar producers are initiating discussions regarding a potential price increase of approximately €20/tonne ($20.6) for deliveries in January, effective next week, Kallanish hears.
Mills previously raised values in December, just before temporarily shutting down their operations for the year-end holiday break. Since then, January asking prices have been at €340/t base ex-works. This compares with €320/t base ex-works earlier in December, which was also achieved in transactions.
Current transaction volume is limited, as buyers are exhibiting a cautious approach, opting to observe market conditions before making commitments. Two buyers, however, say they need to purchase this week.
A few contracts are reported to have been concluded at the base ex-works price of €330/t. A number of buyers are sceptical about the feasibility of an additional €20/t increase, as the €360/t threshold appears unsustainable given the current weak utilisation and pricing dynamics downstream.
Current transactions are priced at €590/t ex-works, including size extras averaging at approximately €260/t. Domestic mesh contracts are also increasing to €430/t, excluding transportation costs – size extras are an additional €300/t, according to sources.
Subdued sales activity continues this week. A rebar seller anticipates the price range of €330-340/t will consolidate next week before contract values progressively rise to a base of €360/t ex-works.
Natalia Capra France
