The Italian longs market has remained sluggish again this week, waiting for some changes that should result from the peace agreement between the United States and Iran.
The markets seem to be in wait-and-see mode as they watch for further developments, and, in the meantime, prices remain unchanged amid very weak demand from final consumers.
Rebar deals in Italy are still firm at €440-450/mt ex-works base (€700-710/mt ex-works including regular extras) and rising to €480/mt ex-works base for southern Italy including transportation costs. Despite the first signs of weakness coming from the scrap market, Italian steel producers are trying to keep prices stable at the aforementioned levels, as decreasing prices now - before summer shutdowns and the peak in energy prices expected in July - could be risky.
The lack of demand, however, continues to weigh on domestic producers, who are partly trying to compensate with exports to other European countries. "Domestic demand is not enough," a source at an Italian producer said, adding, "However, exports can only partially offset it [...]: Romania’s and Bulgaria’s demand cannot replace the domestic market."
In the wire rod market, market players have reported expectations of a drop by €5-10/mt, but the general sentiment remains cautious. Finally, a source at a major Italian mill reports having sold good volumes at unchanged prices.
As for exports, theoretical prices from Italy would be at around €620/mt FOB for rebar and €650/mt FOB for wire rod, but no mills are offering actively for now, since demand “is simply not there”, as one source said. The same source added that the latest requests for rebar have been standing at €600-605/mt FOB.
