Italian rebar transaction and producer quote prices are rising, mills and distribution sources tell Kallanish.
Steelmakers are now asking for a significant, €30/tonne ($32) on-month hike to €370-390/tonne base ex-works. Domestic deal values, however, have increased so far by only €10/t versus last month and are pegged at €330-340/t base ex-works. Including extras, this week’s transactions have reached €590-600/t base ex-works. The level of €610/t ex-works has also been achieved but for very low tonnages.
Domestic mesh is increasing in line with rebar, hovering at €430-440/t base ex-works. Buyers must add transport costs and around €300/t in size extras to obtain effective prices, sources suggest.
According to a buyer, the increases will not stick due to the weak market, and prices will fall back again to about €320/t base ex-works on average. Some local mills have pushed up values due to the current low margins and high cost of raw material. Another source reports limited consumption and sluggish activity in May.
Natalia Capra France