Local Italian merchant bar prices have increased on the back of rising scrap prices. Downstream demand is not great but higher merchant bar prices are gaining acceptance because of concerns that prices may rise even further.
At present, base prices (*see the following note on extras) below €50/mt ($57/mt) have disappeared from the market, while most deals are concluded at average base prices in the range €60-70/mt ($68-79/mt) delivered to customer.
*In the Italian market, price extras can vary in the range of €410-610/mt ($463-689/mt) for domestic sales and in the range of €410-620/mt ($463-701/mt) for foreign markets, depending on dimension and product.
On the export side, Italian producers are offering merchant bars at €470-680/mt ($431-768/mt) delivered to customer depending on product dimensions and destinations. The next challenge will be to anticipate the reaction of customers in North Africa as Ramadan approaches since this is a very important market for Italian merchant bar exports.
€1 = $1.13