Italian rebar transaction prices are starting to edge higher, not because of stronger consumption but due to material shortages, Kallanish notes.
These shortages come from recent production cuts which steelmakers often implement to balance demand and supply, and the early-November fire at Ferriere Nord’s Osoppo plant, which will remain idle for the entire month.
Buyers report difficulties sourcing certain dimensions as well as delivery delays from Ferriere Nord. A mill source says order intake has strengthened as a result of the disruptions.
Producers are now seeking €320-330/tonne ($371.36-382.96/t) base ex-works, having accepted around €300/t until last week. Tightening availability has since made mills less flexible on pricing.
Transaction levels so far this month stand at €290-300/t base ex-works, with sellers expecting further increases in the coming days. One buyer notes that December will effectively be a half month due to the holiday period. Mills are expected to announce additional increases in December, as they usually do before the holiday shutdown.
Including size extras of €260-270/t, effective rebar transaction prices currently sit at €550-560/t ex-works. Mesh prices are also rising, with base levels at €390-400/t plus roughly €300/t in extras, while producers are targeting around €430/t base ex-works.
Natalia Capra France
