Quotations for merchant bars are continuing their upward movement in the Italian domestic market. Following the strong increases seen in base prices, in the past week hikes in size extras have also been seen - up on average by around €20/mt ($30/mt) but also by higher margins. The increase trend for size extras does not seem likely to end in the short term.
Thanks to the positive trend in apparent demand in Europe, especially in the Mediterranean countries, in France, Germany and in Central Europe, Italian mills can bank on plenty of incoming orders and, in addition, they are currently low on available material for sale. These conditions are facilitating the rise in prices, even in a market such as the Italian one where real demand is not great.
Looking towards the near future, the current situation does not appear likely to undergo a change. On the contrary, the steel mills foresee further rises in base prices, which could go up by another €20/mt in the weeks ahead.