All long products in the Italian market are without exception moving as a unit: prices are high and do not appear likely to move down any time soon. An interesting new factor, however, has been introduced by yesterday's decision of the Chinese government to reduce its export tax rebate, which is expected to have a limiting effect on that country's steel exports and also to boost Chinese prices.
Those involved in the Italian longs market say that billet prices are continuing at high levels. Quotations of domestically-produced billets are currently in a range of €475-480/mt, while imported billets of CIS origin vary on average in the range of $575-585/mt CFO. Domestic billet, on condition that one can locate it, has a more rapid delivery, while buyers will have to wait until the end of May or early June for imported billet to be delivered.
Turning to wire rod, the market in Italian is still characterized by a substantial lack of material which has impacted directly on prices. Quotations for Italian-produced mesh quality wire rod are in a range of €510-515/mt ex-warehouse. Meanwhile, quotations for imported mesh quality are slightly lower: Chinese products are quoted at €465/mt CFO, with Turkish production at €495-500/mt.
The market for drawing quality wire rod is showing greater equilibrium on the supply-and-demand front. The price of the Italian product is in a range of €530-540/mt ex-warehouse; Chinese imports are around €485/mt CFO, while Turkish imports have increased to €510/mt CFO.