After the slight recovery seen in the first week of September, probably driven more by restocking activity than by real consumption, the Italian merchant bar market then went to sleep again. Due to the confusion generated by non-coordinated actions among market players (e.g., distributors selling material at lower prices than producers), currently it is really difficult to give definite price levels. The most realistic range is €120-140/mt ex-mill (base price, for <59mm products) for prompt delivery. Looking towards the future, at present it is impossible to envisage a positive scenario. Overcapacity appears to be the worst enemy of an Italian market that is already weak and that will have to fight even higher stock levels.
Meanwhile, some in the Italian market say that in the near future confusion may be generated by the standardization of Italian extras with European ones.
As regards rebar, we find a very similar situation as compared to the local merchant bar market. Rebar base prices are in a range of €145-160/mt, €10/mt lower than at the beginning of September. The most critical issue in Italy's rebar market is also the imbalance between supply and demand.
Both the merchant bar and rebar markets in Italy are faced with a situation that cannot continue over a long period. Market players are currently speaking more about the need for rationalization of supply in the market, rather than about the prospects for a recovery of demand.