After decreasing by about €30/mt in the past month, domestic rebar prices in the Italian market may trend upwards in the coming period thanks to increasing domestic scrap prices. Last week, domestic producers' local rebar prices had decreased to €370-380/mt ($392-403/mt) ex-works, which is too low according to producers. As a result, they will seek to raise their prices at least to the range of €400-410/mt ($424-435/mt) recorded in January. Meanwhile, demand in the local Italian rebar market is still very weak.
Italian rebar producers are still waiting for the release of import licenses in Algeria. Until then, export sales will remain blocked, with volumes stuck at Italian ports waiting to be shipped. Sources think licenses may be released at the beginning or in the middle of March. Meanwhile, it is heard that Italian producers have sold about 10,000 mt of rebar to Lebanon. Italian offers to Lebanon are at $425/mt (€400/mt) FOB, while Turkish offers are at $435-440/mt FOB. Lebanon consumes about 600,000 mt of rebar per year and in 2016 it had imported only 5,000 mt from Italy.
€1 = $1.06