In Italy, local producers' domestic rebar prices have dropped down close to the level of €470/mt ($650/mt) ex-works. Disparities seen in prices last week seem to have diminished after at least one local producer decided to cut its prices. The situation remains poor in terms of transaction activity, while increases are being recorded in local scrap prices due to lack of availability and demand from some steelmakers who waited too long before deciding to restock. 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, with regard to exports to Algeria, the situation is depressed due to recent changes to regulations concerning customs duties. Returning this week from the Feast of Sacrifice holiday, Algerian buyers' stocks are not at high levels, but they are reluctant to buy rebar since they are not sure whether they will be obliged to pay a duty of 15 percent on rebar imports. According to a source consulted by SteelOrbis, exemption from the duty in question requires the submission of documents which are difficult to obtain from Italy, Spain and Greece. Thus, the impasse between buyers and producers continues, with the latter offering material at €445/mt ($615/mt) FOB (or even less) without succeeding in concluding any sales.
€1 = $1.38