Italian rebar prices are beginning to fall in some contracts by some €40/tonne ($40.1/t) compared to last week. According to sources the current high prices of rebar, mesh, and all other long products in Europe are unsustainable, and the wave of increases announced in September has had the effect of slowing activity and the construction sector in Italy.
Distributors tell Kallanish that, after the August holiday break, some private residential construction companies have not re-opened and are now putting new projects and building sites on hold. Some construction contractors are prioritising the most profitable building sites and waiting for prices to go down for others. Public projects are also slowing pace because of the sharp increases in all construction raw materials such as steel, timber, and cement.
A steel buyer noticed that when rebar prices decreased in the past, clients resumed ordering.
“Demand is still there, but new price increases continue to slow the market,” he comments, forecasting a sharp rebar price decline in October. Distributors continue to report high stocks.
This week rebar is selling for between €680-700/t base, ex-works. Including size extras, values are at €940-960/t ex-works. Mesh is between €810-820/t ex-works, depending on tonnages, sources suggest.
Natalia Capra France
