In the Italian market, domestic producers’ rebar prices are currently in the range of €470-490/mt ($630-657/mt) ex-works. Transactions have continued to be heard at €470/mt ($630/mt) while some producers are now asking higher prices in order to make up for the lack of orders from Algeria and the rise of scrap prices. As previously reported, scrap supplies in Italy are on the low side and scrap prices have increased by around €5/mt a week in the past month, reaching €280-285/mt ($375-382/mt) for demolition scrap (E3). Because of the situation regarding troubled Italian steelmaker Riva, many Italian steel producers had not bought scrap and now are running out of the raw material. The limited availability of scrap - a topic that will be the subject of a debate coordinated by Romano Pezzotti, president of Assofermet Rottami, during the 1st Assofermet Day & SteelOrbis Conference, to be held in Brescia on November 15 - will remain a source of concern for producers in the coming months. Meanwhile, rebar demand remains slack in the domestic market.
Meanwhile, in the export market, prior to the end of last week the euro/dollar exchange had dissuaded Algerians buyers from purchasing rebar from Europe. Early this week, demand indicated an improvement due to the weakening of the euro. Some Italian producers, who had previously concluded transactions at the price of €440/mt ($590/mt) FOB, are now offering at €460/mt ($616/mt) FOB due to the increase in scrap prices. Other suppliers, though, believe it is unrealistic to sell at €20/mt ($27/mt) more than last week and so they are not offering material at present.
€1 = $1.34