Italian rebar prices could rise in June as producers consider increases to cover rising costs and an additional energy-related charge that is due during the month.
Large volume orders remain absent, with buyers continuing to purchase moderate quantities frequently.
Producers are seeking €460/tonne ($535.19/t) base ex-works and transacting at this level, though only in very small volumes. They expect to consolidate at this level in the coming weeks. The majority of transactions, however, remain at around €440/t base ex-works.
Although elevated prices allow for some margin, low volumes are forcing producers to implement several days of stoppages this month, which will push up their costs.
Despite the high prices, one buyer tells Kallanish that the construction season is under way and that May has been busier than April.
A distributor sees continued weak consumption overall, with the construction sector supported by infrastructure projects funded by the European post-pandemic recovery fund. An agent reports demand from the railway sector, which is carrying out works across the country.
Including size extras of €260-270/t, effective transaction prices for Italian rebar are currently assessed at €700-730/t ex-works, up from around €540/t at the start of March. Mesh is at €530-540/t ex-works, before size extras of around €300/t.
