Italian longs steel contract prices are largely stable despite producers’ announcing increases at the start of 2026, Kallanish notes.
While certain products, including rebar, are seeing slight declines, others remain steady. Section prices are edging higher, in line with recent hikes implemented by both domestic and European mills.
Agents and distributors report that passing price rises downstream is challenging, particularly in merchant bar, where structural weakness in consumption persists.
Earlier this month, merchant bar makers sought a €50/tonne ($58.94/t) increase, though this has since been reduced to around €20/t.
Buyers had restocked before the announced increases and current consumption at higher prices remains subdued, as buyers are now being delivered material that was booked at old prices. Compared with contract levels at the beginning of the month, contracts show an increase of roughly €10-15/t on average.
Most long steel contracts continue to be agreed at €270-290/t base ex-works equivalent to €690-710/t including size extras, while mills are targeting €300/t ex-works.
Section prices in Italy are moving up by around €30/t. Sustained competition from foreign suppliers, rising energy costs and firmer scrap prices have prompted several European producers to take a stronger pricing stance. Italian first-category sections are trading at approximately €760/t delivered.
The market, however, is uncertain as several payment defaults are emerging. A distributor says maintaining stable month-on-month prices is no longer possible.
“If we try to sell at unchanged prices, we lose orders,” he comments. He adds that recent price increases are further slowing activity, leaving the market out of balance between upstream hikes and downstream price pressure.
Regarding merchant bar, he says he is refraining from new purchases. Material bought in December remains unconsumed due to weak demand, leaving inventories high.
