Italian rebar prices weaken, Spanish market stable

Prices in the Italian rebar market slipped in the week to Wednesday April 19 on continued weak demand.
Wire rod prices, currently stable, are expected to fall below €700 ($767) per tonne amid slow consumption and bearish sentiment, sources told Fastmarkets.

Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €735-760 per tonne on Wednesday, down by €10 per tonne from €745-770 per tonne on April 12.

Market conditions remained quiet in the Italian rebar market in the week to Wednesday, sources said.

Sources were mixed regarding trends occurring in the market; while some sources indicated prices had stabilized and demand was picking up, other sources reported prices were falling and demand was non-existent.

“Rebar demand is not so bad these days and the second half of April seems better than the first,” a buyer source said.

“There is little movement at the moment as volumes for April deliveries have been booked already, and producers are keeping prices fixed with the desire to roll-over these prices for new bookings,” a producer source said.

“The market is quiet and stable. April volume was sold at the end of March and very few new orders are happening currently,” a second producer source in the region said.

In the wire rod market, weak demand could pressure prices downward, sources told Fastmarkets.

Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €700-720 per tonne on Wednesday, unchanged from a week earlier.

Bearish sentiment inhibited market activity in the wire rod market, Fastmarkets heard.

“Prices are expected to fall across the Southern European wire rod market,” a third producer source said.

“We are already starting to see a few orders lower than €700 per tonne delivered to the customer. It may be due to competitive prices from extra-EU countries. I will probably return to market with lower prices over the next few days,” the third producer source added.

Spain
Demand remained relatively strong in the Spanish rebar market in the past week, Fastmarkets heard.

Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €740-760 per tonne on Wednesday, stable from the prior week.

Fundamentals have been improving in the Spanish rebar market, sources said, while falling scrap prices have helped widen margins for producers.

International scrap prices rose significantly between mid-February and mid-March. Since mid-March, however, scrap prices have fallen.

Fastmarkets’ daily calculation of the index for steel scrap HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $425.33 per tonne on Wednesday, down from $431.39 per tonne April 12.

Published by: India-Inés Levy