Demand for merchant bars in Italy's domestic market has still failed to pick up. According to reports from the market, both real and apparent consumption in the month of July have remained below the average levels of previous years.
The slowdown in demand seems to be linked mainly to two factors; firstly, to the drop in activity in the construction sector, and, secondly, to the high levels reached by quotations. This latter factor is causing traders to limit themselves to the minimum amounts of purchases necessary for their day-to-day business, and has also meant that end-users are being cautious in their approach to buying material. As for the steel mills, they are reporting good levels of activity, thanks to the demand coming from overseas.
Prices are currently hovering between stability and decrease: in the past few days some traders have reported that they have obtained a slight reduction in quotations, which, nevertheless, still remain at high levels.
Turning to the near future, producers have already announced increases for August and September, equal to a total of €40/mt. Distributors, however, express scepticism as to the chances of success of this maneuver.