Rebar is going through a difficult period in Italy's domestic market: quotations are down and demand is not great.
After the strong rising trend of the first half of the current year, the domestic rebar market in Italy has entered a vicious circle leading to a decline in prices from July on. According to the price commission of Brescia Chamber of Commerce, base quotations for this product have now fallen to €510-530/mt, down over €30/mt compared to last month, but quite distant from the €630-640/mt base quotations seen in June.
According to players in the rebar market, there are several factors behind the current downtrend. In the first place, there's the overall economic and financial crisis which has been affecting the West, casting a pall over the various production sectors.
In second place, there has been a strong decrease in demand levels. At the present time in Italy, demand (both real and apparent) for rebar is very sluggish. Traders are abstaining from purchases because they fear a collapse in quotations, while end-users are continuing their policy of purchasing according to their needs on the spot market. Exports have also been hit by the drop in demand from Muslim countries due to Ramadan. Thirdly, the changes in the euro/dollar exchange rate are causing difficulties for those countries which use the European currency.
Finally, there has been a strong backward movement in scrap, resulting in three-digit price reductions for this raw material within the space of a few days.
Looking towards the short-term future, the market players interviewed are not particularly optimistic. It appears difficult to see a halt to the current trend.