Italian merchant bar and beam prices remain largely stable, despite a broader market downturn affecting wire rod, rebar, mesh, and all flat products. The recent upward momentum in scrap prices within the country also appears to be waning, with indications of a potential decline ahead.
The current trend, coupled with the weakness observed in Turkish scrap and steel markets, is raising concerns among European long steel producers, who are closely monitoring developments in southern Europe.
Several mill and buy-side sources tell Kallanish that Spain is experiencing a comparable downturn, with uncertainty prevailing in the market. In northern Europe, three sources indicate customers are firmly rejecting the elevated prices currently enforced in France, Germany, Austria and other countries for long products, and are pushing for discounts in upcoming contracts.
A significant buyer in France says he will refrain from acquiring any material unless he secures a price reduction that aligns with the current downturn in downstream demand. Two buyers in France and Austria note they are adopting a wait-and-see approach, while German mills are striving to maintain their elevated pricing levels, beginning to lose orders.
Merchant bar demand in Italy continues to exhibit significant weakness, with a pessimistic forecast provided for the coming weeks. Producers are contemplating an increase in quotes to mitigate the ongoing decline; however, there is a palpable concern regarding the potential loss of orders.
Domestic merchant bar prices are currently under pressure due to import offers from Turkey and Spain at considerably lower rates than those from Italy. Domestic merchant bar is at approximately €650-670/tonne ($742-765) ex-works, inclusive of size extras.
The first category of beams is stable within the range of €780-790/t, inclusive of delivery costs. Lower values are available as Spanish material is being offered at a €40/t discount, and there is a significant rise in competition and supply within the country, with more producers focusing on selling beams.
Meanwhile, Italian rebar is also on a downward trend, with prices descending every week. Values have now reached €250/t base ex-works. Producers are selling at €510-520/t ex-works including €260-270/t size extras.
Natalia Capra France
