Activity in the Italian domestic rebar market is almost nonexistent, according to local market operators. In addition, compared to two weeks ago, little or nothing has changed in the market in terms of prices, which are currently at €450-460/mt ($590-603/mt) ex-works. Since local demand is extremely weak and scrap prices have not strengthened, Italian rebar producers are unable to implement much-desired price increases. Producers' margins are on the tight side due to the relatively narrow gap between prices of scrap and rebar. The arrival of spring has not triggered any recovery so far, but at least rebar prices have stopped decreasing. As in previous weeks, the Italian political stalemate is worrying, while market players call for structural interventions and believe that mergers and acquisitions are needed.
At the moment, the Italian rebar market seems to be supported exclusively by exports. Rebar export offers from Italy are in the range of €460-470/mt ($603-616/mt) FOB. Nevertheless, Algerian buyers, who have recently returned to the market, are buying at a variety of price levels. Meanwhile, some Italian producers are still bypassing traders, preferring to sell directly to foreign end-users.
€1 = $1.31