The Italian rebar market remains in tension, with sustained demand being observed and quotations at high levels - this is the picture of the market presented by the players involved.
In the last two weeks, base prices have seen an increase of €30-40 per metric ton, resulting in base quotations of €330-340/mt, as issued by Brescia Chamber of Commerce on 19.02.2007.
According to the market players, there are three mains reasons behind this increase. First of all, there has been an increase in exports from Italy. From the start of the year, there has been intensification in rebar volumes being shifted out of Italy, especially in the direction of North Africa and Greece.
In second place, the good weather conditions have permitted construction works to continue in regular fashion. This has had a direct knock-on effect on demand, which is at decidedly anomalous levels for the season. However, in recent days there has been a slight cooling-off in demand from end-users, due to the strong rise in quotations.
Thirdly, the reduction in the availability of rebar in the domestic market has also contributed to the upward pressure on prices.
Looking forward to the weeks ahead, most of the market players interviewed expect that the trend begun in recent days will continue. There's also the possibility that the upward spiral will see a prolongation with further price increases observed.