The prices in the Italian domestic rebar market have been decreasing every week since mid-September, with base prices now down to a level of €230-240/mt ($324-339/mt). The price level of rebar in the local Italian market is at around €435-445/mt ($613-627/mt) delivered to warehouse in northern Italy, on actual weight basis with 60-day open account, excluding VAT. Most traders have been holding back on their purchases, only buying the minimum amounts required. This situation has been maintaining pressure on the market. Besides, producers have been turning their attention to exports in order to keep the local market alive and are also reported to be considering production cutbacks.
The Italian export market offers are currently at the level of €420-425/mt ($593-600/mt). The Italian producers have decreased their prices slightly in line with the lack of activity in the Italian domestic market and the decline in the Ukrainian producers' prices. The latter lowered their prices (which they had increased in early September) in parallel with the softening in the Mediterranean and the Middle East markets. Italian offers to North Africa are at $515-520/mt FOB on actual weight basis.
In the past week, producers in the Spanish domestic rebar market increased their prices by €20-30/mt in order to keep the market strong. The base prices announced by the Spanish producers last week were at a level of €275-280/mt ($388-395/mt). However, it would be difficult to say that demand for the new prices has fulfilled the mills' expectations. Thus, a lower base price level of €265-275/mt ($374-388/mt) could be seen in the market; however, this is still €10-15/mt higher than the prices of two weeks ago. The price level of rebar in the local Spanish market is in the range of €490-495/mt ($692-699/mt) delivered to warehouse for 30-day deferred payment, excluding VAT.