According to market reports, there have been no significant price movements in the Italian longs market this week. However, prices remain stable at high levels, and the upward pressure on prices remains palpable. Steel producers show no willingness to reduce price requests, while customers buy only when necessary, avoiding strategic replenishment of stocks.
In the Italian market, the prices of rebar and wire rod have remained unchanged in a range of €440-460/mt ex-works base (€700-720/mt ex-works including regular extras) and €680-720/mt delivered, respectively, where the upper ends are achieved only in specific cases and for small quantities. Demand, in fact, cannot fully support the new high prices.
As for rebar, several sources at mills have stated that the first part of the year is offering overall positive results, but that it is necessary to remain cautious. "Prices are satisfactory," a source said, adding, "but the market [in Italy] is struggling to accept them. Demand from abroad is better, especially within the European Union, so we do not rule out the possibility of further hikes next month."
On the contrary, an Italian steel trader believes that this trend cannot continue for long, stating, "The bubble will burst, sooner or later, and perhaps towards the end of the month there will be a price reduction. But, in this global mess, making predictions is like playing the lottery. We live day by day, waiting for news."
The wire rod segment, on the other hand, seems to be weaker, with demand struggling to take off. According to one operator, the overall range of prices in the market is at its widest in a long time, commenting, "I haven't seen such a wide [price] range for at least ten years, and it's not a good sign for the health of the market. There may be further requests for increases in June, but it will only be to close deals at unchanged levels." He added that falling energy prices (from €144/MWh at the beginning of March to €124/MWh on May 15) could offset scrap price increases.
On the export side, Italy is active in sales of rebar for June shipment with a price range of €630-650/mt FOB. Finally, an unusual increase in requests from the United Kingdom and Ireland is to be noted.
