Italian long steelmakers are pushing prices higher in line with other European mills after suspending sales last week, market sources tell Kallanish.
Rebar prices are increased by as much as €70/tonne ($81.48/t), while other products such as merchant bar are seeing more moderate increases of around €30/t. The merchant bar segment remains structurally weak, with reduced consumption levels. Passing on price increases has proved difficult as buyers are struggling to transfer higher costs downstream.
Two distributors and an agent say overall consumption remains slow, with sales of sections or wire rod derivatives helping offset weaker merchant bar demand.
Last month, merchant bar producers attempted to implement increases of around €50/t, though these were later reduced to roughly €20/t. This month, however, rising energy and transport costs are pushing mills to seek new hikes of around €30/t.
Before the latest increases, contracts had been concluded at €270-300/t base ex-works, equivalent to €690-720/t including size extras. Mills are now targeting around €330/t ex-works.
Section prices in Italy are also rising by €40/t after the market leader suspended sales last week due to surging energy costs linked to the US-Iran conflict, in line with several other European producers and ArcelorMittal (see separate article).
First-category sections in Italy are now quoted at around €800/t delivered for April delivery, compared with roughly €760/t delivered before the escalation. Last week, lower levels were still available for imported material.
