Last week's news about the seizure of Siderpotenza, rebar producer located in the southern Italy city of Potenza and owned by Pittini Group, had transmitted the feeling of material tightness in the Italian rebar market. This brought Pittini's competitors to apply a price increase of €20-25/mt ($27-34/mt) to €455/mt ($610/mt) ex-works.
Though, at the end of last week the shipment area of Siderpotenza's plant was unseized and this caused a revision of local prices to €445/mt ($596/mt) ex-works and "even something less" according to an operator interviewed by SteelOrbis. In any case, the upcoming summer stoppages have led to a general slowdown in activities.
According to sources, the removal of seals from the shipment area of Siderpotenza has enabled Pittini Group to deliver rebar at the previous prices in the Italian market. Pittini now hopes that the implementation of the works prescribed by the investigative judge who ordered the seizure allows the resumption of production in a relatively short time, i.e. in September.
Before the seizure, Pittini Group aimed rebar offers for export markets at around €460/mt ($616/mt) CFR Algeria, but at the moment the Italian producer is unable to produce material for the export markets due to the seizure that is still valid for the production area of Siderpotenza.
SteelOrbis has learned that meanwhile Spanish producers are offering rebar to Algeria at €440/mt ($590/mt) FOB.
In any case, at the moment there are not real requests coming from abroad.
€1 = $1.34